Which of the following statements about handling an early termination is true?
A) The bailout clause does not help in handling easy terminations if sales do not meet an agreed-to level.
B) It is good to set up a long-term lease initially.
C) A "cap" or limit on how long to continue paying rent aids in easy lease termination.
D) If business falters,there is no obligation to continue paying monthly rent.

Question

Quizplus · Accepted Answer

A "cap" or limit on how long to continue paying rent can make it easier to terminate a lease early if needed. This can be negotiated as part of the lease agreement before signing. The other options are incorrect. The bailout clause can provide some help in handling early terminations, even if sales do not meet an agreed-to level. It is not always good to set up a long-term lease initially, as this may not be financially feasible or strategic for the business. And if business falters, there may still be an obligation to continue paying monthly rent, depending on the terms of the lease agreement.

Which of the Following Statements About Handling an Early Termination