What happens under an Acceleration clause in default?

What happens under an Acceleration clause in default?

• A. In default, all future rental are now due
• B. In default, only past due rent is due
• C. In default, the lease terminates immediately
• D. In default, late fees apply

Answer: (A)

An acceleration clause makes the remaining rent due immediately if a default occurs. When default happens, the landlord can demand that all future installments under the lease be paid right away, turning what would be due over the rest of the term into a lump sum. This provides the landlord with immediate cash and reduces the risk of unpaid future rent. It's not just past due rent that becomes due, and it doesn't automatically terminate the lease—termination or eviction are separate remedies that may be pursued in addition to acceleration. Late fees are a separate charge and not the primary effect of acceleration. So the best explanation is that all future rents become due now.

An acceleration clause makes the remaining rent due immediately if a default occurs. When default happens, the landlord can demand that all future installments under the lease be paid right away, turning what would be due over the rest of the term into a lump sum. This provides the landlord with immediate cash and reduces the risk of unpaid future rent.

It's not just past due rent that becomes due, and it doesn't automatically terminate the lease—termination or eviction are separate remedies that may be pursued in addition to acceleration. Late fees are a separate charge and not the primary effect of acceleration.

So the best explanation is that all future rents become due now.