Is porn fest an illegal stuff? Of course there is property damage for which they are responsible, but other than that? I lived a long time in Prague, and there are porn fests once every few days in every block and nobody seems to worry.
I'd be more worried about lying in the contract, but that's just me. If I sub lease you a real-estate parcel for non-commercial use and then you charge money, that's you using my property for a (unauthorized) commercial transaction. Not to mention the provision of alcohol (commercially) which is seperately regulated. Etc.
Not only does this demonstrate lack of integrity in the direct relationship, it creates problems with thrid-party contracts and service providers. Ie, insurance claims etc. So, yeah I would be making you sign an open ended imdeniication for any breech such as this. And you're lawyers wouldn't like that.
Also, there is repuataional damage to my brand. Again, if you did this in breech of my contract, I would put you on the hook for this via the terms of the contract.
Of course, we might never sign a deal If I was this well protected and your intentions were not above board.
