03 Jun COVID-19 PANDEMIC IN THE REAL ESTATE SECTOR: FOCUS ON THE DOCTRINES OF FORCE MAJEURE AND FRUSTRATION TO TENANCY/LEASE AGREEMENTS
As governments, organizations, and individuals all over the globe continue to grapple with the precarious economic climate and other hardships occasioned by the COVID 19 pandemic, businesses and individuals are seeking pragmatic ways to ameliorate the effect of the pandemic on their business and personal lives respectively. With the halting of business activities occasioned by the restriction on movement, most businesses and organization are finding it hard to stay afloat. The cumulative effect of this interruption of business activities is loss of businesses and consequently, the reduction or in some cases, outright loss of income by individuals and organizations.
Various sectors including the real estate sector have been seriously hit and impacted by this pandemic. There is therefore no doubt that the current situation would negatively impact the ability of tenants to fulfill their contractual obligations to pay rent.
In this article, we shall briefly discuss the legal doctrines of Force Majeure and Frustration in relation to the COVID 19 pandemic and as they apply to the contractual obligation to pay rent in Tenancy and Lease Agreements. We shall also attempt to proffer practical guide to preventing/ resolving disputes that may arise as a result of failure to pay rent due during this…continue reading