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Landlord Tenant Law Litigation

Buyout Provisions In Commercial Lease Litigation

Litigation frequently involves an attempt by one party to enforce the terms of the buyout provision through specific performance. But that remedy may be less readily available than the parties might assume. This article explores the reasons why, and suggests some drafting considerations.


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Real estate joint ventures often include a contractual provision for one side to buy the other out under certain circumstances. Although these provisions vary widely, one feature they share is that their purpose is to end the relationship. As a result, when they are invoked the parties are often at odds. It should therefore come as no surprise that they can give rise to litigation.

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