Currently, Missouri law recognizes three options available to a landlord upon a tenant’s default. ![]() However, Missouri courts have yet to recognize or enforce such a provision. ![]() ![]() This provision allows a landlord to accelerate all future lease payments upon a tenant’s default and demand immediate payment. One provision that falls somewhere in the middle and which are becoming more common in commercial lease agreements is the Acceleration Clause. In other words, if the provision provides a financial windfall to the landlord as opposed to an attempt to compensate the landlord for the damages caused by the tenant’s default, then Missouri courts are unlikely to enforce such a provision. One limitation is where a provision may act as a penalty against the tenant for breaching the term(s) of a lease agreement. Furthermore, so long as both the landlord and tenant are sophisticated parties,Missouri courts will likely uphold any provision that is negotiated in good faith between the parties. As a general matter, landlords have more freedom under Missouri law when negotiating the terms of a commercial lease agreement with prospective tenants versus residential landlords. Can a commercial landlord sue for lease payments upon a tenant’s default when those payments are not actually due? The answer is maybe.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |