Question

A clause in a percentage lease whereby the landlord has a right to regain the premises if the tenant fails to achieve a stated gross would be:

a) Escape clause
b) Forfeiture clause
c) Reversion clause
d) Termination clause

Answer 1

A termination clause in a percentage lease allows the landlord to regain the premises if the tenant does not meet a stated gross sales figure.

Step-by-step explanation:

A clause in a percentage lease whereby the landlord has a right to regain the premises if the tenant fails to achieve a stated gross would be known as a termination clause.

This type of clause allows the landlord to terminate the lease agreement under certain conditions, such as the tenant's failure to meet specific financial benchmarks. It serves as a form of protection for the landlord to ensure that the investment is yielding the anticipated financial return.