Also known as: rent acceleration clauses · acceleration clause
Written by attorneys · grounded in primary & secondary sources — see below
A lease provision authorizing the landlord to declare all future rent installments immediately due upon the tenant's default in payment or other covenant.
Riley Rivera leased warehouse space to Ravi Reddy under a five-year lease containing a rent acceleration clause. After Reddy missed three monthly payments, Rivera sent written notice declaring the entire remaining balance immediately due. Reddy tendered only the arrears, but Rivera rejected the partial payment and pursued collection of the full accelerated amount.
Rajesh Rao leased commercial property to Renata Russo under a lease with a rent acceleration clause requiring payment of all remaining rent upon default. After Russo defaulted, Rao demanded the full accelerated sum. Russo argued the clause operated as an unenforceable penalty rather than valid liquidated damages.
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Courts generally uphold rent acceleration clauses when they serve as a reasonable pre-estimate of damages rather than a penalty. The clause substitutes an agreed sum for actual damages upon breach, provided it is not disproportionate to the anticipated loss.
Many leases and jurisdictions require the landlord to give written notice of acceleration after default before the full balance becomes due. Without proper notice, the tenant may retain the right to cure by paying only the arrears.
Once acceleration has become effective through proper written notice, tender of only the missed installments generally does not reinstate the lease. The tenant must pay the full accelerated balance to prevent enforcement unless the lease or statute provides otherwise.
…by lessee, landlord was entitled to all accrued rental payments). Furthermore, the lease at issue does not contain an acceleration clause. As a result, we hold that the trial court was correct in not allowing Bowdoin Square's claim for future rent. Conclusion Because we hold that the trial court erred in determining…