Contracts
A Minnesota commercial lease contains a 'HVAC maintenance' clause requiring the tenant to maintain and repair the HVAC system. A major compressor failure costing $15,000 occurs. Under this clause, who pays?
AAlways the landlord since HVAC is a building system
BAlways split equally between landlord and tenant
CThe tenant, as required by the maintenance clause✓ Correct
DThe party who can prove the failure was their fault
Explanation
When a commercial lease specifically assigns HVAC maintenance and repair to the tenant, the tenant bears the cost of repairs including major component failures. Unlike residential leases where landlords cannot assign major system maintenance to tenants, Minnesota commercial leases can validly require tenants to maintain building systems. Tenants should carefully review and negotiate these provisions before signing.
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