This section identifies the events that will constitute a default by the landlord or the tenant. This provision may include a waiver to allow the landlord to waive non-material breaches. Failure to pay on time - The landlord will typically reserve a short notice period on this in which they can exercise a remedy for the failure to pay on time. Breach of terms - This may include not having the requisite insurance. This is usually reserved for the material terms of the contracts. There may also be default if there is a declaration of bankruptcy or a default in payment to creditors, winding-up or dissolution of the tenant company. Landlord will want the definition of material to be as wide as possible while the tenant will want it to be limited and clearly defined. Opportunity to remedy (usually included): Each default is tied to an applicable remedy exercised by the landlord. That is, this provision is inserted for the benefit of the landlord to protect against the risks assumed by a tenant not meeting their obligations under the lease.