This office lease provision lists the conditions under which the landlord shall accept surrender and the lease shall be deemed terminated.
Keywords: Indiana, Conditional Limitation of Tenant Liability Good Guy Provision, types Description: The Indiana Conditional Limitation of Tenant Liability Good Guy Provision is a legal concept that provides a certain level of protection for commercial tenants facing financial difficulties. This provision is designed to prevent tenants from abandoning leased premises and leaving landlords with potential financial losses. The Good Guy Provision essentially allows a tenant to limit their liability for rent and other lease obligations if they voluntarily surrender the leased premises before the lease term expires. By doing so, tenants can avoid potential legal consequences and financial obligations that may arise from breaking the lease before the agreed-upon term. There are two main types of Indiana Conditional Limitation of Tenant Liability Good Guy Provisions: 1. Traditional Good Guy Provision: In this type, the tenant agrees to surrender the premises voluntarily before the lease termination date and provide notice to the landlord. By doing so, the tenant limits their liability for future rent payments and other lease obligations from the surrender date onward. However, any unpaid rent or other obligations accrued up until the surrender date remain the tenant's responsibility. 2. Key Money Good Guy Provision: This variant involves the tenant paying a "key money" fee to the landlord in exchange for the benefit of limited liability. The key money is often a substantial amount, acting as an incentive for the tenant to prioritize fulfilling their lease obligations and surrendering the premises in a timely manner. Similar to the traditional provision, any unpaid rent or obligations accrued prior to the surrender date are still the tenant's responsibility. The Indiana Conditional Limitation of Tenant Liability Good Guy Provision offers a fair balance between tenant rights and landlord protection. It benefits tenants by allowing them to limit their financial liabilities in cases where they no longer require the leased premises, while also providing landlords with a sense of security against potential losses resulting from tenant abandonment.
