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.
