Act Of God Clause In Rent Agreement

DHG Mgmt. Co. v. French Partners LLC, et al., No., 654319/2020 (N.Y. Sup. Ct. N.Y. Cty. 2020) (tenant of the plaintiff for breach of the lease agreement, which provided that the lessor would give the tenant access to the leased property seven days a week. Plaintiff-tenant argued that this promise was made, not only with respect to the landlord, but with respect to the “world.” When the state closure took place, the lessor claimed that it was a force majeure event, which overturned the owner`s obligation to grant consistent access to the rented premises. The complainant-tenant argues that the force majeure clause is not applicable because the complainants do not claim that the lessor himself violated Confederation; On the contrary, the applicant`s argument is that the lessor has issued a guarantee to third parties who have interfered with the tenant`s access, And this is where the government has prevented the tenant`s access and the landlord is therefore responsible for this damage) (09/09/2020 Complaint) (10/05/2020 Notice on dismissal and confirmation in support of the dismissal application) (10/12/2020 Confirmation of dismissal) The appearance of a “force majeure” would result in the consequences foreseen in the contract. A typical force majeure clause would first define events that would constitute a “force majeure” and then indicate the consequences of such an event. The wording of the clause will determine whether a particular event is covered by the force majeure clause and the consequences that must follow.

Force majeure is not a magic wand if one renounces the waiver to which all contractual obligations, such as the payment of rent, are terminated. The most common question with the GG retail team today is whether the force majeure clauses or “Act of God” justify the suspension of tenants` performance of their obligations under their leases (mainly operating and rent). The response depends on the specific language of the contract, local law and the causal link between the pandemic and the tenant`s inability to meet their leasing obligations.

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