This office lease form is a standard default remedy clause, providing for the collection of the difference between the rent due and owing under the lease and the rents collected in the event of mitigation.
Maine Default Remedy Clause: In Maine, the Default Remedy Clause refers to a provision commonly found in contracts that outlines the actions and remedies available to parties in the event of a breach of contract or default. It serves as a legal mechanism to protect the non-breaching party by providing them with recourse in case the other party fails to fulfill their contractual obligations. The Default Remedy Clause typically explicitly defines the consequences and steps that will be taken in case of a breach, including the available remedies and the process of invoking these remedies. It is essential to carefully draft this clause to ensure clarity and to mitigate any potential disputes that may arise. There are different types of Default Remedy Clauses commonly used in Maine: 1. Liquidated Damages Clause: This clause specifies a predetermined amount of damages that the breaching party must pay as compensation to the non-breaching party. It is often included in contracts when it is challenging to estimate the actual damages caused by a breach. The liquidated damages amount should be a reasonable estimate at the time of contract creation and not be excessive or punitive. 2. Right to Terminate: This type of clause grants the non-breaching party the right to terminate the contract entirely in case of a breach. Termination may be immediate or after providing a notice period, as specified in the clause. The non-breaching party may also be entitled to recover any costs or damages incurred as a result of the breach. 3. Right to Cure: This clause allows the breaching party a specific period to cure the breach before any further action is taken. It provides an opportunity for the breaching party to rectify the default and fulfill their contractual obligations to avoid any severe consequences. 4. Specific Performance: This remedy requires the breaching party to fulfil their contractual obligations as agreed upon, rather than solely providing monetary compensation. It is typically used when the subject of the contract is unique or when monetary damages would be insufficient to make the non-breaching party whole. It is crucial to consult a legal professional when drafting or reviewing a Default Remedy Clause in Maine. This will ensure that the clause complies with state laws and adequately protects the parties' interests in the event of a breach or default.
