This office lease provision lists the conditions under which the landlord shall accept surrender and the lease shall be deemed terminated.
The New York Conditional Limitation of Tenant Liability Good Guy Provision is a lease clause used in commercial real estate transactions in the state of New York. This provision is intended to offer protection to tenants who wish to terminate their leases early while limiting their liability under certain circumstances. It is commonly known as the "Good Guy Guarantee" or the "Good Guy Clause." The purpose of the New York Conditional Limitation of Tenant Liability Good Guy Provision is to provide tenants with an opportunity to exit their lease agreements without incurring excessive financial obligations. This clause acts as a compromise between landlords seeking long-term tenants and tenants who require flexibility to adapt to changing business needs. The Good Guy Clause typically applies to commercial tenants, primarily in the retail sector. It is commonly used in New York City, where long-term leases are common, and businesses often face uncertain market conditions. This provision is vital for budding businesses or those undergoing significant changes in strategy, who might need the flexibility of early lease termination. The basic structure of the Good Guy Provision identifies specific conditions that need to be met for a tenant to benefit from its protections. These conditions usually include prompt notice of lease termination, surrender of the premises, and the payment of rent up until the date of surrender or a specific termination date. The tenant must also be "in good standing" throughout the lease term, meaning they have fulfilled all financial and other obligations outlined in the lease agreement. By complying with these conditions, a tenant can limit their personal liability for any unpaid rent or other obligations after they vacate the premises. This limitation of liability is conditional based on the tenant's compliance with the terms of the Good Guy Clause. If the tenant satisfies all requirements, they will not be held liable beyond the specified termination date. It is important to note that variations of the New York Conditional Limitation of Tenant Liability Good Guy Provision may exist, reflecting the unique circumstances of each lease agreement. These variations typically arise from negotiations between the landlord and tenant and may include additional or modified conditions to further protect their respective interests. In summary, the New York Conditional Limitation of Tenant Liability Good Guy Provision is a lease clause designed to safeguard tenants in commercial real estate transactions. It permits early termination of a lease agreement while limiting liability for unpaid rent and other financial obligations, but only if certain conditions are met. This provision caters primarily to commercial tenants in New York City, offering them flexibility while maintaining a fair balance of rights and responsibilities between landlords and tenants.
