Asked by Felicia Thompson on Jun 13, 2024
Verified
The recognition clause in a lease allows landlords to adjust rent according to the consumer price index or some other economic scale.
Recognition Clause
A provision in a contract that specifies the conditions under which a party acknowledges something as true, such as union recognition in labor contracts.
Consumer Price Index
A measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.
Economic Scale
Economies of scale, which refer to the cost advantages that enterprises obtain due to size, output, or scale of operation.
- Understand the practical aspects and implications of lease terms for businesses.
Verified Answer
MG
Michelle GutierrezJun 19, 2024
Final Answer :
False
Explanation :
The recognition clause in a lease typically refers to the agreement between a landlord and a tenant that the landlord will recognize a tenant's union or other bargaining agent, not to adjustments in rent based on economic scales. Adjustments in rent based on the consumer price index or other economic scales are usually covered under a rent escalation clause.
Learning Objectives
- Understand the practical aspects and implications of lease terms for businesses.