Facility Damage or Destruction Clause Samples

The Facility Damage or Destruction clause outlines the procedures and responsibilities in the event that the facility covered by the agreement is damaged or destroyed. Typically, this clause specifies whether repairs must be made, how insurance proceeds are handled, and under what circumstances either party may terminate or modify the agreement due to the extent of the damage. For example, if a leased building is rendered unusable by fire, the clause may allow the tenant to suspend rent or the landlord to rebuild within a certain timeframe. Its core function is to provide a clear framework for addressing significant property damage, thereby reducing uncertainty and potential disputes between the parties.