Accelerated Rent Clauses in Commercial Leases: Drafting and Enforcing Liquidated Damage Clauses

A live 90-minute premium CLE webinar with interactive Q&A


Tuesday, April 14, 2020

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, March 20, 2020

or call 1-800-926-7926

This CLE webinar will discuss best practices for landlords to draft enforceable accelerated rent clauses in commercial leases. The program will also discuss potential defenses to these claims by tenant's counsel when the strict criteria for application are not met.

Description

Most commercial leases include provisions that provide for accelerated rent to be paid by the tenant to the landlord in the event of a default. Although such arrangements may be standard, the ability to enforce them is often difficult if the contract terms do not abide by the most typical restrictions imposed by law.

Counsel must ensure the contract criteria for accelerated rent meets all required factors, which are typically an explicit declaration in the lease that the breach would create damages difficult or impossible to estimate when executing the contract. Further, counsel must communicate that parties intend for these provisions to serve as damages and not penalties. Finally, the damages must be a reasonable estimate of the probable loss.

Drafting enforceable language in these cases requires skill and understanding of what courts will need to move forward. An assertive defense of these claims may limit the bulk of a tenant's potential liability in the event of a default. Therefore, landlords' and tenants' counsel must understand and review these provisions.

Listen as our authoritative panel of commercial real estate practitioners discusses drafting and negotiating accelerated rent provisions that meet criteria for enforcement and provides practical tips regarding pre-commencement improvement, build-out, and functional maintenance and repair, as well as indemnification provisions to allocate risk.

READ MORE

Outline

  1. Criteria for enforcement
    1. Difficult or impossible to estimate damages at time lease is signed
    2. Damages vs. penalty
    3. Reasonable pre-estimate of probable loss
  2. Defenses to enforcement
  3. Practical tips for drafting

Benefits

The panel will review these and other essential matters:

  • What elements are included in an enforceable accelerated rent clause?
  • How can a tenant best defend again a claim for accelerated rent and what grounds exist to negotiate these clauses?
  • What are best practices for drafting accelerated rent provisions?

Faculty

Watt, Brian
Brian P. Watt

Partner
Troutman Sanders

Mr. Watt represents clients in a wide variety of matters, with an emphasis on complex litigation and commercial real...  |  Read More

Additional faculty
to be announced.

Live Webinar

Buy Live Webinar
Includes Early Discount Savings of $50 (through 03/20/20)

Live Webinar

$297

Buy Live Webinar & Recording
Includes special savings of $300 (through 03/20/20)

Live Webinar & Download

$394

Live Webinar & DVD

$394 + $19.45 S&H

Other Formats
— Anytime, Anywhere

Includes Early Discount Savings of $50 (through 03/20/20)

Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

48 hours after event

$297

Download

48 hours after event

$297

DVD

10 business days after event

$297 + $19.45 S&H