Tenant’s Right; Contest Conditions Clause Samples
The "Tenant’s Right; Contest Conditions" clause defines the tenant's ability to challenge or contest certain actions, requirements, or claims made by the landlord or third parties under the lease. Typically, this clause outlines the procedures the tenant must follow to initiate a contest, such as providing notice to the landlord, maintaining compliance with lease obligations during the contest, and possibly posting a bond or security. For example, a tenant might contest a tax assessment or a landlord's claim of default, provided they meet the specified conditions. The core function of this clause is to balance the tenant’s right to dispute potentially unfair or erroneous claims while protecting the landlord’s interests and ensuring the lease remains in good standing during the dispute process.
Tenant’s Right; Contest Conditions. Notwithstanding anything to the contrary in this Lease, Tenant shall have the exclusive right to contest, at its sole cost, by appropriate legal proceedings diligently conducted in good faith, the amount or validity of any Real Estate Taxes or Prohibited Lien; the valuation, assessment, or reassessment (whether proposed, phased, or final) of the Premises for Real Estate Taxes; the amount of any Real Estate Tax; the validity of any Law or its application to the Premises; the terms or conditions of, or requirements for, any Approval; or the validity or merit of any claim against which this Lease requires Tenant to Indemnify Landlord (any of the foregoing, a “Contest”). Tenant may defer payment or performance of the contested obligation pending outcome of the Contest, provided that Tenant causes the following conditions (collectively, the “Contest Conditions”) to remain satisfied:
Tenant’s Right; Contest Conditions. Notwithstanding anything to the contrary in this Lease, Tenant shall have the exclusive right to contest, at its sole cost, by appropriate legal proceedings diligently conducted in good faith, the amount or validity of any Real Estate Taxes or Prohibited Lien; the valuation, assessment, or reassessment (whether proposed, phased, or final) of the Premises for Real Estate Taxes; the amount of any Real Estate Tax; the validity of any Law or its application to the Premises; the terms or conditions of, or requirements for, any Approval; the validity or merit of any claim against which this Lease requires Tenant to Indemnify Landlord; or any other matter involving a Person other than Landlord that Tenant has agreed to comply with or be bound by under this Lease that is susceptible to Contest (any of the foregoing, a "Contest"). Tenant may defer payment or performance of the contested obligation pending outcome of the Contest, provided that Tenant causes the following conditions (collectively, the "Contest Conditions") to remain satisfied: