Property Management
A North Dakota commercial tenant's lease includes a 'force majeure' clause. This clause protects the tenant from liability for:
AFailure to pay rent if commodity prices drop
BNon-performance due to extraordinary events beyond the parties' control, such as natural disasters or government-mandated closures✓ Correct
CNormal business slowdowns
DTenant-caused property damage
Explanation
A force majeure clause excuses contractual performance (like paying rent or opening for business) when extraordinary events beyond the parties' control make performance impossible, such as natural disasters, pandemics, or government orders.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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