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Exploring the Hell-or-High-Water Clause: A Key Legal Provision
Definition & Meaning
A hell-or-high-water clause is a provision commonly found in leases, particularly those involving personal property. This clause requires the lessee (the person renting the property) to make full rent payments to the lessor (the property owner) regardless of the condition of the leased item. Even if the leased property becomes defective, unsuitable, or is destroyed, the lessee is still obligated to fulfill their payment commitments once they have accepted the lease terms.
Table of content
Legal Use & context
This clause is primarily used in lease agreements, especially in commercial and personal property contexts. It serves to protect the lessor's financial interests by ensuring that they receive payment even if the property does not perform as expected. Users can manage their lease agreements using legal templates available through services like US Legal Forms, which provide professionally drafted documents tailored to various legal needs.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
(Hypothetical example) A business rents a piece of machinery under a lease that includes a hell-or-high-water clause. If the machinery breaks down during the lease term, the business is still required to pay the agreed rent, even though the equipment is unusable.
State-by-state differences
Examples of state differences (not exhaustive):
State
Notes
California
Generally enforces hell-or-high-water clauses in commercial leases.
New York
Enforcement may vary based on specific lease terms and circumstances.
Texas
Commonly included in both residential and commercial leases.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Force Majeure Clause
A provision that frees parties from liability when an extraordinary event prevents them from fulfilling a contract.
Unlike a hell-or-high-water clause, a force majeure clause can excuse non-performance due to unforeseen circumstances.
Termination Clause
A provision that allows parties to end a contract under specific conditions.
A hell-or-high-water clause obligates payment regardless of circumstances, while a termination clause provides a way to exit the contract.
Common misunderstandings
What to do if this term applies to you
If you are entering a lease that includes a hell-or-high-water clause, carefully review the terms and understand your obligations. Consider using US Legal Forms to access templates that can help you draft or review your lease agreement. If you have concerns or if the situation is complex, consulting a legal professional may be beneficial.
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