Extensive Damage; Election Sample Clauses
The "Extensive Damage; Election" clause defines the rights and procedures available to parties when a property suffers significant damage, typically during the term of a lease or purchase agreement. It usually outlines the threshold for what constitutes "extensive" damage and provides the affected party—often the buyer or tenant—with the option to either terminate the agreement or proceed with repairs or restoration. For example, if a building is substantially damaged by fire or natural disaster, the clause may allow the party to elect to cancel the contract or require the seller or landlord to restore the property. This clause's core function is to allocate risk and provide a clear process for decision-making in the event of major property damage, thereby reducing uncertainty and potential disputes.
Extensive Damage; Election. If the building or buildings located on the leased premises shall be destroyed or damaged by fire or other casualty insurable under Standard Hazard Insurance, so as to become wholly untenantable, and:
1. the leased premises cannot be repaired or restored within one hundred eighty days (180) after such damage or destruction; or
2. the unexpired portion of the term or any renewal term of this Lease is two (2) years or less at the date of the damage; then either Landlord or Tenant may terminate this Lease as of the date of such destruction or damage by giving written notice to the other party of such election within thirty (30) days after such damage or destruction.
Extensive Damage; Election. If more than one-third of the Premises and/or Building shall be destroyed or damaged by fire or other casualty, so as to become wholly untenantable, or if the unexpired portion of the Term shall be eighteen (18) months or less at the date of the damage, regardless of extent, or if the cost to Lessor to repair the Premises shall be estimated at $500,000.00 or more, then Lessor may elect not to repair or rebuild by giving notice in writing terminating this Lease; otherwise Lessor shall, within thirty (30) days after such damage, give Tenant notice of its intention to repair or rebuild and shall proceed with reasonable speed. The obligation of Lessor hereunder and under Paragraph (A) of this Article shall be limited to Lessor’s Work as set forth in the Description of Lessor’s Work in Exhibit “C” and Tenant shall be required to complete the repair and restoration of the Premises by repairing and restoring the work designated as Tenant’s Work on Exhibit “C.”