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In the Spotlight: The Assignment Provision

By Joseph P. Heins
May 24, 2013

Tenants are accustomed to negotiating assignment provisions heavily as they relate to a third-party transfer. However, the effects that such provisions can have on a tenant's corporate autonomy are often overlooked. A thorough consideration of the assignment clause reveals that it can have a profound impact on a tenant's ability to run its business, including any expansion or reorganization. This article explores the strategy of negotiating an assignment provision that protects a tenant's ability to conduct business, and offers practical suggestions that will allow both the landlord and tenant ultimately to arrive at a mutually agreeable result.

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