In a lease agreement, if the lessee fails to pay rent, which clause might be invoked?

Study for the Arizona 6-Hour Contract Writing Course. Use flashcards and multiple choice questions with hints and explanations. Prepare effectively for your exam!

In a lease agreement, if the lessee fails to pay rent, the termination clause is often invoked to address this breach of contract. The termination clause outlines the circumstances under which the lease can be legally terminated, which usually includes non-payment of rent. This clause allows the lessor to end the lease and regain possession of the property if the lessee does not fulfill their contractual obligations, such as making timely rent payments.

While the other clauses mentioned can be relevant in different contexts, they do not directly address the issue of non-payment. A personal guarantee pertains to an individual taking responsibility for the lease obligations, an arbitration clause typically involves resolving disputes outside of court, and a force majeure clause relates to unforeseen events that prevent contract fulfillment but does not apply directly to payment issues. Thus, the termination clause is the most relevant and appropriate response to a situation where a lessee fails to pay rent.

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