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Simple English definitions for legal terms
most-favored-tenant clause
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A quick definition of most-favored-tenant clause:
A most-favored-tenant clause is a part of a commercial lease agreement that promises the tenant that they will receive the same benefits as other tenants in the same building. This means that if the landlord gives any special deals or discounts to other tenants, the tenant with the most-favored-tenant clause will also receive those same benefits.
A more thorough explanation:
A most-favored-tenant clause is a provision in a commercial lease that guarantees the tenant will receive the same benefits as any other tenant in the same building or complex.
For example, if a landlord offers a rent reduction or free parking to another tenant, the most-favored-tenant clause ensures that the tenant with this clause in their lease will also receive the same benefit.
This clause is important for tenants because it ensures that they are not being treated unfairly compared to other tenants in the same building or complex.
most-favored-nation treatment | most-significant-contacts test