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June 10, 2019

What is the diplomatic clause?

In the event that the hirer needs to terminate the lease agreement before expiry, the hirer can terminate as long as they fulfill the diplomatic clause period with 2 months’ notice.

Example: The lease agreement is a 2 years lease with diplomatic clause of 12+2 months. Should the hirer choose to terminate the lease agreement on the 12th month, the hirer will need to give a 2 month notice to fulfill the minimum of 14 months lease.