Covid And Lease Agreements

The exemption of obligations during the duration of the prohibition does not imply any liability for non-compliance with obligations. Therefore, there is no reason to charge tenants z.B. contractual penalties for non-activity on the premises and to charge the owner of a bank guarantee or deposit to satisfy their claims during the duration of the ban. As part of the compensation of the landlords in the context of the expiry of the lease and service obligation, the law provides for the possibility of extending the term of the lease. However, it appears that Parliament`s intention was not to lead to the abolition of all leases and, therefore, there is no reason to exempt the parties from the other obligations of the tenancy agreement – the tenant is not obliged to hand over the premises and has the right to store his property there, and the lessor is not obliged to return to the tenant bank guarantees, bonds that insure the sums earned under the tenancy agreement, or the tenant`s declarations of voluntary disposition. During the coronavirus pandemic, office and retail tenants seek arguments for rent reductions and/or extensions of payment periods, or even termination of leases. This is an extremely acute issue, particularly for retail catering establishments, gymnasiums and educational institutions whose activities are currently suspended. Landlords and tenants are questioning the implementation of such agreements. Tenants are looking for reasons to avoid payment or reduce their rent by exceptionally altering relationships, inability to provide a faultless service or a default on the purpose of the contract. Depending on the contractual nature of the lease, the lessor is obliged to allow the lessor to use the purpose of the contract and to make it available for the duration of the contract4. On the other hand, the lessor is subject to the debt of the lessor on the due date5. However, due to the above measures, it should be noted that the lessor`s debts are temporarily impossible, since the lessor has not been able to temporarily make employment available to the lessor in accordance with the agreement.