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| May 2020 NEWSLETTER |
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Leases, Contracts and COVID-19: What is Force Majeure?
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With many businesses locked into leases but struggling to pay rental as a result of the pandemic and its economic effects, landlords and tenants across the spectrum are wondering what their legal position is with “ force majeure” being widely touted as a mechanism for tenants to escape their leases. If it is, a lot of landlords are going to be left high and dry; if it isn’t, many cash-strapped tenants will be staring financial ruin in the face.
We discuss what force majeure means and the two scenarios that landlords and tenants should consider. We end off with “a practical template for negotiation” and the thought that these general principles apply to contracts generally and not just to property leases.
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Disclaimer
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The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for professional, detailed and appropriate advice.
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