Subtantial destruction Clause Samples
The 'Substantial destruction' clause defines the rights and obligations of parties when a significant portion of property or assets covered by an agreement is damaged or destroyed. Typically, this clause outlines what constitutes 'substantial' damage, such as a threshold percentage of loss, and specifies the procedures to follow, which may include options for repair, replacement, or termination of the agreement. Its core function is to provide a clear framework for handling major losses, thereby reducing uncertainty and potential disputes in the aftermath of significant destruction.
Subtantial destruction. Anything contained in the foregoing provisions of this Section to the contrary notwithstanding.
6.2.1 if during the Term, the Building is so damaged by fire or any other casualty that (a) either the Premises or (whter or not the Premises are damaged) the Building are rendered substantially unfit for occupany, as reasonably determined by the Landlord, or (b) the Building is damaged to the extent that the Landlord reasonably elects to demolish the Building, then in either case the Landlord may elect to terminate this Lease as of the date of the occurrence of such damage, by giving written notice thereof to the Tenant within thirty (30) days after such date; and
6.2.2 in such event, (a) the Tenant shall pay to the Landlord the Base Rent and any Additional Rent (apportioned, where applicable) to the time of such termination, (b) the Landlord shall repay to the Tenant any and all prepaid Rent for periods beyond such termination, and (c) the Landlord may enter upon and repossess the Premises without further notice.