This office lease clause is an onerous approach to a default remedies clause. This clause is similar to those found in many New York City landlord office lease forms.
Massachusetts Onerous Approach to Default Remedy Clause
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A limitation of liability clause (sometimes referred to simply as a liability clause) is the section in a contracted agreement that specifies the damages that one party will be obligated to provide to the other under terms and conditions stipulated in the contract.
A limitation of liability clause limits the amount and/or types of damages that may be attributable to a particular party under the contract for that party's future breach or misconduct while performing under the contract.
This provision specifies the remedies for an Event of Default and also outlines the order in which available funds will be disbursed to the lenders. all outstanding borrowings become immediately due and payable. all outstanding borrowings become immediately due and payable.
Limitation of Remedies in the Context of Freedom of Contract. Under the principle of ?freedom of contract,? the parties to a contract may agree to expand or limit otherwise available remedies.
In many agreements, you may find a clause labeled ?limitation of remedy.? This clause is largely similar to a limitation of liability clause in that it controls how much responsibility a company has under a contract. Often, however, the limitation of remedy clauses limits the types of remedies you can pursue.