What is an example of a prohibited use clause?
Asked by: Deanna Feeney | Last update: June 6, 2026Score: 4.5/5 (75 votes)
A prohibited use clause lists activities a user or tenant cannot do, such as using a website for illegal purposes, sending spam, harming minors, or in a lease, operating an illegal business or one that creates a nuisance, ensuring legal compliance, protecting the provider's reputation, and maintaining a desirable environment. For example, a common clause might state, "Tenant shall not use the premises for any illegal, immoral, or offensive purpose, nor engage in activities that disturb other occupants, such as selling food without a license or operating a check-cashing service".
What are examples of prohibited actions?
Such actions include, but are not limited to: inflicting verbal, mental, or physical harm upon any person; engaging in any intentional or reckless action from which verbal, mental, or physical harm could result; and causing a person to believe that the offender may cause verbal, mental, or physical harm.
What does prohibited use mean?
Prohibited uses refer to specific activities, actions, or purposes that are expressly forbidden under a contract, policy, or agreement.
What is the permitted use clause?
A Standard Clause favoring the landlord for use in a retail lease agreement. This Standard Clause discusses permitted uses, prohibited uses, exclusive uses, rules and regulations, compliance with laws, and representations and warranties.
What is the prohibition of assignment clause?
The prohibition of assignment is an important contractual clause that prevents a contracting party from transferring its rights and obligations to third parties without consent.
3 Prohibited Clauses You Can't Legally Enforce
Under what circumstances are assignments prohibited?
The inclusion of an anti-assignment clause in a contract can prohibit any assignments. Assignment materially alters performance. If the performance due under the contract will be materially altered by an assignment or if the risks for the other party are increased, the assignment is unlikely to be enforceable.
What do you mean by prohibited assignment?
"Assignment prohibited" refers to a clause in a contract that prohibits a party from transferring their rights, obligations, or interests under the contract to another party without the prior consent of the other party or parties involved.
What is the meaning of permitted use?
Permitted uses means allowed activities, which can be described generally or in more specific terms in the lease. A lease may broadly permit “normal agricultural activities” or it may have a list that “includes but is not limited to” certain activities. A permitted use may still require permission.
What are some red flags in a lease agreement?
Red flags in a lease include unclear clauses, hidden fees, strict guest/subletting rules, automatic renewals with high fees, and landlords who are hard to reach or push for cash payments, all indicating potential unfairness or scams; look for specifics on maintenance, early termination, and landlord entry, ensuring all agreed-upon terms are in writing and terms are reasonable for your state.
What are examples of prohibited?
Prohibited examples are things forbidden by rule, law, or authority, such as smoking in public buildings, texting while driving, carrying weapons, using certain substances, or sharing trade secrets, often indicated by signs like "No Bicycles" or "No Food". They range from everyday restrictions (no running in hallways) to serious legal prohibitions (prohibited drugs) and cover actions, items, and content.
What are examples of prohibited things?
Prohibited means the item is forbidden by law to enter the United States. Examples of prohibited items are dangerous toys, cars that don't protect their occupants in a crash, bush meat, or illegal substances like absinthe and Rohypnol.
When to use prohibited?
You can use it to express that something is not allowed. For example: "It is prohibited to use cellphones during class."
What are the 4 types of prohibited conduct?
There are four “main” types of prohibited conduct which include: Direct Discrimination, Indirect Discrimination, Harassment and Victimisation.
What are the four categories of prohibited acts?
(a) Prohibited acts. The list of prohibited acts are divided into four separate categories based on severity: Greatest; High; Moderate; and Low. We describe the prohibited acts in Table 1—Prohibited Acts and Available Sanctions.
What is an example of a prohibited act?
An example of a "prohibited acts" clause
“The Employee shall not engage in any prohibited acts, including but not limited to theft, fraud, bribery, harassment, or the unauthorized disclosure of confidential information.
What is the 90% rule in leasing?
The 90% rule in leasing is an accounting guideline for classifying leases as either finance leases (like a purchase) or operating leases (like a rental), stating that if the Present Value (PV) of all lease payments is 90% or more of the leased asset's fair market value at lease inception, it's typically a finance lease. It helps determine if the lease effectively transfers the risks and rewards of ownership, requiring capitalization on the lessee's balance sheet.
Which of the following actions by a landlord would be illegal?
It's illegal for landlords to discriminate, harass, or retaliate against tenants, and they cannot perform "self-help" evictions like changing locks or shutting off utilities; they must follow proper court procedures, maintain habitable conditions (no pests, water issues), provide proper notice for entry and rent increases, and handle security deposits legally, respecting tenant rights to privacy and safety.
What is the 1% rule when leasing?
The "1% lease rule" is a quick guideline for evaluating potential car lease deals, suggesting the monthly payment (excluding tax) should be around 1% or less of the car's Manufacturer's Suggested Retail Price (MSRP) for a good deal, like a $30,000 car leasing for under $300/month. It's a simple filter for quickly spotting good value but doesn't capture all costs like taxes, fees, or specific market conditions, so it's best used as a starting point before deeper analysis.
What is the difference between permitted and prohibited?
These words are antonyms, meaning they mean opposite things. Prohibited means something is not allowed, and permitted means that it is allowed. For example, you might say. alcohol is prohibited in this area of the restaurant. or you are permitted. to go to lunch from 1:00 to one thirty PM.
Can you walk away from a commercial lease?
A commercial property lease usually continues until its end date unless it includes a break clause. A break clause is a line in the lease that allows the landlord, tenant or both to end a lease early without facing a penalty. It includes an agreed date when the lease can be ended.
What are red flags when renting a house?
Red flags when renting include poor property maintenance (leaks, pests, broken appliances), an unresponsive or pushy landlord, suspiciously low rent, shady application processes (asking for cash, no screening, vague terms), and missing paperwork like a lease or rental license, all pointing to potential scams or a difficult rental experience. Always inspect thoroughly and trust your gut if communication feels off.
Can you assign a contract without consent?
Generally speaking, contracts can be freely assigned to third parties. Non-assignment provisions are designed so that contracts cannot be as freely assigned to third parties; or at least, not without first obtaining the contracting counterparty's consent.
What does prohibited activity mean?
Prohibited activities refer to specific actions, behaviors, or practices explicitly forbidden under a contract, agreement, or policy.
Under what circumstances is an assignment prohibited?
Generally, an anti-assignment provision prohibits the transfer or assignment of some or all of the assigning party's rights and obligations under the contract in question to another person without the non-assigning party's prior written consent.