What does the 'use clause' in a lease agreement define?

The 'use clause' in a lease agreement is a critical component that specifically outlines how the tenant is permitted to use the leased space. This clause is designed to define the scope of activities allowed on the property, ensuring that both the landlord's interests and the property's intended use are protected.

For example, in a commercial lease, the use clause may specify that the tenant can only operate a restaurant, thereby restricting activities that might conflict with that use, such as retail sales or a nightclub. This clarity helps to prevent disputes regarding what is acceptable within the leased premises and maintains the integrity of the property.

Understanding the function of the use clause is essential for both landlords and tenants, as it establishes expectations for the use of the property, provides legal protection, and can also impact the property's value depending on the type of business conducted there.