Legal Question in Real Estate Law in Ohio

Looking for the meaning behind the term ''material inducement''.

My daughter sent me a copy of a lease agreement she was going to enter into for a house lease down at college. There were 3 clauses that raised a flag. ''Covenant Not To Sue'', ''Alternative Dispute Resolution'' and ''Inducement''. 1st question, the ''Inducement'' clause reads, ''The parties acknowledge that the Covenant Not To Sue and Alternative Dispute Resolution clauses are a material inducement to enter into this Agreement.'' What does that mean? 2nd, I have a feeling that if she wants to strike those clauses they'll say, ''too bad, no lease for you.'' Can they do that?

Basically, college town = limited leasing opportunities by only a few holding companies.


Asked on 9/10/02, 2:37 pm

1 Answer from Attorneys
Frank Rozanc Frank J. Rozanc, Esq.

Re: Looking for the meaning behind the term ''material inducement''.

I can't give you a full answer without looking at the whole contract, but I believe your feeling is correct. They probably put that in there to make the lease stress free for themselves. You might want to compare the language in the contract with ORC Chapter 5321 to make sure that the landlord is not trying to push off some of their duties unfairly on the tenants.

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Answered on 9/14/02, 3:54 am


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