Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

subrogation clause

Read a random definition: at-will employment

A quick definition of subrogation clause:

A subrogation clause is a part of an agreement that allows one party to pay for certain expenses related to the property and then recover those payments from future earnings. For example, in an oil and gas lease, the lessee may be allowed to pay taxes or mortgages on the property and then deduct those payments from the profits they make from the lease. This clause helps protect the interests of both parties and ensures that the property is properly maintained and managed.

A more thorough explanation:

A subrogation clause is a provision in a contract that allows one party to pay off certain debts or obligations on behalf of another party and then recover those payments from future proceeds. In the context of oil and gas leases, a subrogation clause may allow the lessee to pay taxes, mortgages, or other encumbrances on the leased property and then recoup those payments from the revenue generated by the lease.

Imagine that a company leases a piece of land for oil and gas exploration. The land has an outstanding mortgage that the lessor has failed to pay. The lessee may choose to pay off the mortgage in order to avoid any legal issues or complications with the lender. However, the subrogation clause in the lease would allow the lessee to recover the amount paid for the mortgage from the revenue generated by the lease.

Another example could be if the leased property has outstanding property taxes. The lessee could pay the taxes and then recover that payment from the revenue generated by the lease.

These examples illustrate how a subrogation clause can protect the lessee from financial liabilities associated with the leased property and ensure that they are able to recoup any payments made on behalf of the lessor.

subrogate | subrogative

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
BulbasaurNoLikeCardio
7:51
@texaslawhopefully: best prices and only fast food that doesn't make me sick
matt gaetz ethics report released
paid for sex with a junior in high school
guarantee people still defend him
BulbasaurNoLikeCardio
9:51
I only read headlines and skimmed a random article of it since I am the only one at work this week. Seems like he is Republican Hunter Biden but not at the paying rent with poop paintings stage
ImpartialLion
9:55
Sent in my transcript at 6 am today and it’s processing. Think it will be processed before lsac closes tmrw?
BulbasaurNoLikeCardio
9:58
I would say it is a toss up, for how much LSAC charges us for everything they are extremely efficient in processing and sending stuff out BUT with a 30% uptake in applicants and the holidays it may be significantly slower unless it is ran through and processed by a computer program. Even if it takes them longer to process it, not like there is anyone at a school to request and review it after LSAC does their thing
Do we know if any of the t14 open at all this week
just called Fordham. they said there will be decisions going out today
so congratulations on pre xmas waves
BulbasaurNoLikeCardio
10:27
Hope schools are chill and just send As leaving the Rs for next month lol
soap
10:49
Fingers crossed for good luck today
BulbasaurNoLikeCardio
10:56
@soap: really hoping to get that UTK call today
11:08
what if instead of a room of one’s own virgina Woolf wrote a cubicle of one’s own
UGA ED deferrals are coming out rn
Only 14 days left until HLS sends out their first wave of decisions. I'm thinking about re-using my advent calendar to help me count down
alcohol advent calendar for decisions sounds incredible
@Unrepentant-Caucasian: ur bio is crazy
11:41
@chickenburgahfart: cauc is the zezemzer with a plan
@chickenburgahfart: Thanks, I guess? lol
LSD+ is ad-free, with DMs, discounts, case briefs & more.