In a retail leasing context, a provision stipulating that once a co-tenancy violation has occurred and has continued for a specified period, the tenant must either:

The fish or cut bait clause is one of the most important clauses that a landlord can negotiate to protect itself against long-term adverse economic consequences posed by co-tenancy clauses. The fish or cut bait clause limits the time period during which the tenant can elect to pay reduced rent as a result of a violation of its co-tenancy clause.

For more information about fish or cut bait clauses in retail leases, see Practice Note, Retail Lease: Key Provisions: Co-Tenancy Clause.