Which of the following statements about handling an early termination is true?
A) The bailout clause doesn't not help in handling easy terminations if sales do not meet an agreed-to level.
B) It is good to set up a long-term lease initially.
C) A "cap" or limit on how long to continue paying rent aids in easy lease termination.
D) If business falters,there is no obligation to continue paying monthly rent.

Question

Quizplus · Accepted Answer

A "cap" or limit on how long to continue paying rent aids in easy lease termination as it helps the tenant to have an idea of how much they would be liable to pay in case of early termination. This can be negotiated with the landlord at the time of setting up the lease agreement. The other options are incorrect as the bailout clause may still require payment if certain conditions are not met, setting up a long-term lease may make it difficult to terminate early, and there is usually an obligation to continue paying monthly rent even if business falters.

Which of the Following Statements About Handling an Early Termination