8.19.1: The tenant is required to protect the landlord from any loss that may arise from a claim against the tenant due to a breach of the agreement. This includes any reasonable legal costs the landlord may incur.
8.19.2: The tenant must indemnify the landlord for any loss incurred due to dishonoured cheques or failed standing order payments.
Intention of the Clause:
The clause is designed to protect the landlord from financial loss that may arise due to the tenant's breach of any covenant in the tenancy agreement. This includes, but is not limited to, legal costs and charges related to dishonoured cheques or failed standing orders.
Why It's Important:
Understanding this clause is crucial for both landlords and tenants for several reasons:
Financial Security: It provides a safety net for the landlord in case of financial loss due to the tenant's actions.
Legal Compliance: Both parties are aware of their legal obligations, reducing the risk of disputes.
Transparency: The clause sets clear expectations regarding financial responsibilities, making the tenant aware of potential liabilities.
Accountability: It holds the tenant accountable for any financial disruptions they may cause, encouraging responsible behaviour.
Dispute Resolution: In the event of a legal dispute, this clause provides a framework for financial responsibilities, potentially expediting the resolution process.
By understanding the implications of this clause, both landlords and tenants can ensure a more secure and transparent financial relationship.