A Lease Provision That Agrees to Release and Hold Harmless

question 31

True/False

A lease provision that agrees to release and hold harmless both the landlord and tenant from each other's actions in regard to any casualty to the premises impairs an insurance company's right of subordination.

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Definitions:

Activity at Capacity

The level of operational activity that a company can achieve using its current resources without incurring additional costs.

Machine-Hours

A measure of the amount of time machines are used in the production process, often related to the allocation of manufacturing overhead.

Direct Labor-Hours

The total hours of labor directly involved in the production of goods or services, used as a basis for assigning labor costs to products.

Forming

A manufacturing process that involves shaping and combining materials to create a product.