Which clause in a lease allows for equitable cancellation due to governmental actions?

The condemnation clause in a lease is specifically designed to address situations where governmental action affects the property. This clause provides the tenant or the landlord with the right to terminate the lease if the property is taken through the process of condemnation, which is the government's legal action to take private property for public use.

When a property is condemned, it generally means that the government has determined that the property is needed for public use—such as for a roadway, school, or other infrastructure—and has the power to take possession, often providing compensation to the property owner. The presence of a condemnation clause ensures that both parties are aware of their rights regarding lease cancellation in the event of such actions, thus promoting a transparent and fair agreement.

Understanding this clause is crucial for both landlords and tenants, as it can significantly affect property use and the financial implications of such government interventions. The other provided options do not intrinsically relate to governmental actions in the same way the condemnation clause does; for instance, a subletting clause pertains to a tenant's ability to rent out the property, and a quiet enjoyment clause ensures the tenant's right to use the property without interference, both of which do not address governmental powers. The assignment clause deals with the transfer of lease obligations to another party