Termination or Abatement after Damage Sample Clauses
The 'Termination or Abatement after Damage' clause defines the rights and procedures for ending or modifying a contract if the subject property suffers significant damage. Typically, this clause outlines the circumstances under which either party may terminate the agreement or reduce (abate) their obligations, such as rent, following events like fire, flood, or other substantial harm to the premises. Its core function is to allocate risk and provide a clear process for both parties to follow in the event of serious damage, ensuring that neither is unfairly bound to an unworkable contract.
Termination or Abatement after Damage. (a) If and whenever the Premises are destroyed or damaged by any cause to the extent that, in the Landlord's reasonable opinion to be given in writing to the Tenant within 60 days after the occurrence of such damage or destruction, they are unable to be repaired or rebuilt within 180 days after such destruction or damage, then either the Landlord or the Tenant may terminate this Lease by notice to the other, to be given within 30 days after the giving of the Landlord's written opinion above referred to, and the Tenant shall immediately thereupon surrender the Premises and this Lease to the Landlord and Rent shall be apportioned to the date of such destruction or damage (subject to the payment of Rent from the date of such destruction or damage to the date of surrender in the same proportion that the part of the occupiable area of the Premises fit for occupancy by the Tenant until such surrender is to the total occupiable area of the Premises).
(b) If and whenever all or any portion of the Building is destroyed or damaged by reason of any cause (whether or not such portion includes all or any part of the Premises) to such extent that:
(i) in the Landlord's reasonable opinion to be given to the Tenant in writing within 60 days after the occurrence of such damage or destruction, it is unable to be repaired or rebuilt within 180 days after such destruction or damage; or
(ii) the estimated cost (as estimated by the Landlord) of repairing or rebuilding the Building exceeds the proceeds of insurance available to the Landlord for such purpose (or which would have been available if the Landlord had insured in compliance with section 10.1); the Landlord may terminate this Lease upon not less than 30 days' prior written notice to the Tenant, given within 60 days after the happening of such destruction or damage, and the Tenant shall immediately thereupon surrender the Premises and this Lease to the Landlord; and
(iii) if and to the extent that such destruction or damage has rendered the Premises in whole or in part unfit for occupancy by the Tenant, Rent shall ▇▇▇▇▇ from the date of such destruction or damage to the date of surrender in the same proportion that the part of the occupiable area of the Premises unfit for occupancy is to the total occupiable area of the Premises; and
(iv) otherwise Rent shall be apportioned to the date of surrender.
(c) If and whenever the Premises are destroyed or damaged by reason of any cause and this Lease shall not have been termina...