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PLAYBOOK TEMPLATES

Office Lease

An Office Lease establishes tenancy rights and obligations for commercial premises. This playbook analyzes rent structures, maintenance responsibilities, and default remedies.

Defaults and Remedies

Why This Matters: Without defined default procedures, parties may face protracted disputes, enforcement challenges, and operational uncertainties.

Negotiation strategy

If you're the Landlord:

Ensure default triggers are specific and not overly broad. Advocate for reasonable cure periods and flexible remedies to protect business interests.

If you're the Tenant:

Negotiate for clear and fair default triggers. Ensure cure periods are sufficient to address potential issues and seek remedies that align with operational capabilities.

Essential elements

1

Default Triggers

Conditions causing a default.
2

Cure Period

Time allowed to fix defaults.
3

Termination Rights

Conditions for ending the agreement.

Action framework

ACCEPT

Propose edits if default triggers are unclear or cure periods are too short.

EDIT

Reject if default clauses are overly punitive or unenforceable.

ADD

Add language for insolvency scenarios or additional remedies.

PRO TIP

Always align default and remedy clauses with business objectives and legal requirements.

Example clauses

FAVORABLE

Clear Default Triggers

"An Event of Default shall occur if any of the following events take place: (a) failure by either party to perform any material obligation under this Agreement, which failure is not cured within thirty (30) days after receipt of written notice from the non-defaulting party; (b) any representation or warranty made by either party in this Agreement proves to have been false or misleading in any material respect when made; (c) either party becomes insolvent, makes an assignment for the benefit of creditors, or is subject to any proceeding under any bankruptcy or insolvency law."
NEUTRAL

Standard Cure Period

"In the event of a default, the defaulting party shall have a period of thirty (30) days from the date of receipt of written notice of such default to cure the default. If the default is not cured within this period, the non-defaulting party may pursue any remedies available under this Agreement or at law."
UNFAVORABLE

Broad Default Clauses

"Any failure to perform any obligation under this Agreement shall be considered an Event of Default, allowing the non-defaulting party to terminate immediately."

Fallbacks

High-Risk Projects

In high-risk projects, consider shorter cure periods and more stringent default triggers to mitigate potential losses.

Long-Term Contracts

For long-term contracts, ensure default clauses allow for renegotiation or adjustment to reflect changing circumstances.

Cross-Border Agreements

In cross-border agreements, account for jurisdictional differences in default and remedy enforcement.
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