28-Dec-2006

Maybe yes.. Maybe no...

Many leases provide a clause similar to an acceleration clause in a Deed of Trust. This is a clause where if the tenant defaults on his/her obligations under the rent, the landlord can recover the remainder of the rents due under the entire lease agreement, not only back rent. The majority of jurisdictions have held that these clauses are enforceable. However, some courts have refused to enforce them due to the fact that they may not be equitable or disproportionate to the actual loss.

When drafting a commercial lease, these acceleration clauses are important to add because there is no chance in enforcement of the clause if it is not included within the agreement signed by all parties.