Abandonment Clause

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A provision in a contract that outlines the rights and obligations of the parties in the event one party abandons or fails to fulfill their obligations under the contract.
The abandonment clause in the lease agreement stated that the landlord could retake possession of the property if the tenant failed to pay rent for three consecutive months.
In Mineral Park Land Co. v. Howard (1916), the California Supreme Court held that an abandonment clause in a mining lease did not allow the lessee to avoid paying royalties if they ceased mining operations due to unforeseen circumstances.
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Frequently Asked Questions

What is the purpose of an abandonment clause?

To provide clarity and protection to both parties in case of abandonment, outlining the remedies available and the procedures to be followed.

Is an abandonment clause always enforceable?

Not always. The clause must be fair and reasonable, and a court may refuse to enforce it if it is unconscionable or violates public policy.

What are some common types of abandonment clauses?

Clauses dealing with abandonment of real property, personal property, contracts, or even a spouse in a marriage.

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