DEFAULTS / REMEDIES - Understanding Commercial Leases - Part 15

This is Part 15 of a multi-part series on Understanding Commercial Leases.

DEFAULTS / REMEDIES

DEFAULT - Failure of Landlord or Tenant to fulfill one or more obligations under the lease.

MONETARY DEFAULTS - Defaults where Landlord or Tenant fails to pay money required under the lease.

NON-MONETARY DEFAULTS - Defaults where Landlord or Tenant fail to meet obligations under the lease that do not involve the payment of money.

REMEDIES - Rights granted to Landlord or Tenant, either under the lease (Contractual
Remedies) or under the law (Legal Remedies) to remedy damages or injuries caused by the default of the other party.

LANDLORD'S INTEREST

• Provide for as few types of Landlord defaults as possible and restrict the remedies granted to Tenant.
• Provide for as many types of Tenant defaults as possible and grant the Landlord wide latitude as to choice of one or more remedies.

TENANT'S INTEREST

• Provide for as many remedies as possible in the event of Landlord default (such as right to terminate lease, not pay rent, etc.) 
• Provide for as few types of Tenant defaults as possible and restrict the Landlord’s  remedies as much as possible. 
• Provide Tenant with time period to cure defaults before remedies can be used.