Casualty Clause
(Retail Lease) (Pro-Tenant)

Summary

This casualty clause may be used in a retail lease to set forth the rights and obligations of the landlord and the tenant in the event the leased premises are damaged in whole or in part by a casualty event. This clause includes practical guidance, drafting notes, and optional clauses. A casualty clause is necessary in a retail lease to outline the landlord's and the tenant's recourse following a casualty to the leased premises, whether the recourse is the restoration of the leased premises or the termination of the lease. A casualty provision may have significant operational and financial impacts on the parties in the event of a casualty and should be carefully considered. Defined terms and section references in this clause are for illustrative purposes only and should be modified to conform to the terms utilized in the lease agreement. This clause favors the tenant. For a casualty clause that favors the landlord and can be used in a retail lease, see Casualty Clause (Retail Lease) (Pro-Landlord). For further guidance on drafting and negotiating commercial leases, see Office Lease Agreements, Retail Lease Agreements, and Industrial Lease Agreements.