The "Acceleration of Rent" clause allows a landlord to demand the immediate payment of all remaining rent due under a lease if the tenant breaches the agreement, typically by defaulting on rent payments. This provision aims to compensate the landlord for potential losses resulting from the tenant's early termination of the lease term.
Following Termination of Possession and Acceleration of Rent. Furthermore, following Termination of Possession and acceleration of Rent by Sublandlord, Subtenant will pay to Sublandlord the present value, discounted at the Discount Rate, of the difference between (i) the aggregate Base Rent and Additional Rent for the balance of the Term and (ii) the Fair Market Value Amount.
Acceleration of expense of $1.8 million, which included the acceleration of rent expense associated with operating lease ROU assets of $0.9 million related to certain leases that will be abandoned or terminated and the related depreciation and amortization of property and equipment of $0.9 million.
Acceleration of Rent. By notice to SUBTENANT, SUBLANDLORD shall have the right to accelerate all Annual Rent and any other amount due hereunder and otherwise payable in installments over the remainder of the Term, and, at 21 SUBLANDLORD’s option, any other Additional Rent to the extent that such Additional Rent can be determined and calculated to a fixed sum; and the amount of accelerated rent to the termination date, without further notice or demand for payment, shall be due and payable by SUBTENANT within five (5) days after SUBLANDLORD has so notified SUBTENANT, such amount collected from SUBTENANT shall be discounted to present value using an interest rate of six percent (6%) per annum. Additional Rent which has not been included, in whole or in part, in accelerated rent, shall be due and payable by SUBTENANT during the remainder of the Term, in the amounts and at the times otherwise provided for in this Sublease.
16.7 Acceleration of Rent . If any of the events referred to in paragraph 16.1 or paragraph 16.2 occur then, in addition to all other rights available to the Landlord, including the rights referred to in this paragraph 16.7, the full amount of the current month’s Basic Rent and Additional Rent, and all other payments required to be made monthly by the Tenant, and the next ensuing 3 months’ Basic Rent and Additional Rent will immediately become due and payable as accelerated rent, and the Landlord may recover the accelerated rent in the same manner as Rent in arrears, including immediately distraining for it together with all other arrears then unpaid.
Acceleration of Rent If any of the events in Section 9.1 or Section 9.2 occur, the then current month’s rent and the rent for the next three (3) months, will immediately become due and payable as rent in arrears, and the Landlord may recover it in the same manner as rent in arrears including taking distress action.
Acceleration of Rent. By notice to Tenant, Landlord shall have the right to accelerate all Rent and all expense due hereunder and otherwise payable in installments over the remainder of the Term; and the amount of accelerated rent to the termination date, without further notice or demand for payment, shall be due and payable by Tenant within five (5) days after Landlord has so notified Tenant, such amount collected from Tenant shall be discounted to present value using an interest rate of six percent (6%) per annum. Additional Rent which has not been included, in whole or in part, in accelerated rent, shall be due and payable by Tenant during the remainder of the Term, in the amounts and at the times otherwise provided for in this Lease.
Accelerated rent expense—Includes charges of $0.6 million for the nine months ended September 30, 2023, and $0.2 million for both the three and nine months ended September 30, 2022, related to the acceleration of rent expense associated with abandoned operating leases.
Acceleration of Rent. By written notice to Tenant, Landlord may accelerate and sue for the entire balance of unpaid Rent and other sums payable hereunder, for the remainder of the Lease Term, subject to the following: in the event of acceleration, the amount due from Tenant shall equal the present value of all future Rent (calculated by using a discount rate of three percent [3%]), in excess of the present value (using the same discount rate) of the aggregate rental value of the Premises for the remainder of the Term.
The acceleration of expense of $2.0 million for the nine months ended January 31, 2023 included the acceleration of rent expense associated with operating lease ROU assets of $0.9 million related to certain leases that will be abandoned or terminated, and the related depreciation and amortization of property and equipment of $1.1 million.
1. Acceleration of Rent. By notice to Tenant, Landlord shall have the right to accelerate all Rent and all expense due hereunder and otherwise payable in installments over the remainder of the Term; and the amount of accelerated rent to the termination date, without further notice or demand for payment, shall be due and payable by Tenant within five (5) days after Landlord has so notified Tenant, such amount collected from Tenant shall be discounted to present value using an interest rate of six percent (6%) per annum. Additional Rent which has not been included, in whole or in part, in accelerated rent, shall be due and payable by Tenant during the remainder of the Term, in the amounts and at the times otherwise provided for in this Lease.
The acceleration of expense of $0.1 million and $0.5 million in the three and six months ended October 31, 2023, respectively, included the acceleration of rent expense associated with operating lease ROU assets related to certain leases that will be abandoned or terminated, and the related depreciation and amortization of property and equipment. The acceleration of expense of $1.8 million for the six months ended October 31, 2022 included the acceleration of rent expense associated with operating lease ROU assets of $0.9 million related to certain leases that will be abandoned or terminated, and the related depreciation and amortization of property and equipment of $0.9 million.
(iv) Seller, and to Seller’s Knowledge any other party to the Lease, is not in breach or default under such Lease, and no event has occurred or circumstance exists which, with the delivery of notice, the passage of time or both, would constitute such a breach or default, or permit the termination, modification or acceleration of rent under such Lease;
22.12No Acceleration of Rent or Consequential Damages. In the event of Subtenant’s default under this Sublease, Sublandlord may exercise any and all rights remedies available under this Sublease, at law or in equity, provided that Sublandlord shall not accelerate Subtenant’s Base Rent, and consequential damages shall not be recoverable by Sublandlord except to the extent (a) due and payable by Sublandlord pursuant to the Lease and (b) caused by Subtenant's failure to comply with the provisions of this Sublease. In no event shall Sublandlord be liable to Subtenant for special, indirect, incidental or consequential damages in connection with this Sublease.
Acceleration of rent is a provision commonly found in lease agreements that allows a landlord to demand the entire remaining balance of rent if a tenant defaults on any part of the lease. This clause is designed to protect landlords from prolonged periods of non-payment or breaches of lease terms. Essentially, once this clause is invoked, the tenant becomes liable for all unpaid rent that would have accrued over the remaining lease term.
You should use an acceleration of rent clause in lease agreements to:
This clause can be particularly useful in commercial leases where the financial stakes and potential losses from a defaulting tenant can be significant.
When drafting an acceleration of rent clause, the language should be clear, specific, and legally sound. Here is a basic example of how this could be worded:
Upon any default by the Tenant, including but not limited to non-payment of rent, the Landlord reserves the right to declare the entire remaining rent for the term immediately due and payable as liquidated damages. The Tenant shall be liable for all costs, attorney fees, and expenses incurred by the Landlord in collecting the accelerated rent.
You may want to consult legal counsel to ensure compliance with local laws and to customize the clause to fit the specific needs of your lease agreement.
Contracts that typically contain acceleration of rent provisions include:
Including an acceleration of rent clause in relevant lease agreements can significantly bolster the contractual safeguards for landlords against tenant defaults.
Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
An access easement grants a property owner the right to use a specified portion of a neighboring property for access, such as pathways or driveways, typically to reach a public road or other destination. This type of easement is legally binding and outlines specific terms and conditions under which the access is permitted.
An "Agreement in Principle" clause signifies a preliminary agreement between parties on the fundamental terms and conditions of a future contract, indicating mutual understanding but not yet legally binding. This clause outlines the basic framework and intentions, pending further detailed negotiations and formalization.
Alternative dispute resolution (ADR) clauses in contracts stipulate that parties will use methods like mediation or arbitration to resolve disputes instead of turning to litigation. These clauses aim to expedite conflict resolution, reduce legal costs, and maintain more amicable business relationships.
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