Which situation accurately depicts a lease termination upon government condemnation?

When government condemnation occurs, it refers to the process in which a government entity takes private property for public use, typically under the power of eminent domain. In such situations, existing leases are generally terminated automatically due to the fact that the property is no longer available for use by the tenant because it is being taken over by the government.

Therefore, the correct choice highlights that the condemnation results in the cancellation of any existing lease agreements. This termination is necessary because the purpose of condemnation is to facilitate a public project, which may render the existing lease moot as the tenant can no longer legally occupy or use the property once it is condemned. The tenant's rights to occupy the space are superseded by the government’s need for the property.

This understanding is crucial for tenants and landlords alike when they face the issue of condemnation, as it directly impacts the rights and obligations of both parties involved in the lease.