What does the default provision define?

• A. It lists penalties for late payments only.
• B. It sets forth events deemed a default and the remedies allowed by the lease and by law.
• C. It prohibits remedies.
• D. It applies only to non-payment.

Answer: (B)

A default provision defines both what events count as a default and what remedies the lease and the law allow when a default happens. It isn’t limited to penalties for late payments; it covers any breach or condition the lease treats as default—such as failure to meet covenants, insolvency, unauthorized transfers, or neglecting required maintenance. Along with identifying the default events, it lays out the steps and remedies available, like giving notice and a cure period, accelerating rent, pursuing eviction or forfeiture, or seeking damages. The remedies come from what the lease permits and what the applicable law allows, ensuring they’re enforceable and fair.