After the pandemic, many companies could not pay their rent to their commercial landlords. Commercial lease agreements rarely cater for such an unplanned situation. However, commercial landlords and tenants are now introducing pandemic clauses to their new leases. You may find it helpful to include one in your commercial lease agreement; without one, you may need a county court to determine the situation. This article will explain a pandemic clause in commercial leases in the UK.<\/p>\n\n\n\n
When a company runs their business from commercial premises, it may have a commercial lease. This is where the business occupies the landlord\u2019s property for a fixed term in return for rental payments. <\/p>\n\n\n\n
A commercial lease agreement governs a commercial lease. It is a written binding contract between the two parties with details of their rights and obligations. These are in the covenants and clauses within the lease agreement. <\/p>\n\n\n\n
A pandemic clause recognises that legislation or Government intervention might prevent a commercial tenant from trading on their premises where restrictions exist. This includes a lockdown and accounts for the fact that the tenant might cease trading and the premises left vacant. Usually, this vacancy of premises is not permitted otherwise. <\/p>\n\n\n\n
People may refer to these as \u2018covid clauses\u2019 or \u2018force majeure clauses\u2019. The latter is where the landlord and tenant have agreed that the lease agreement can be varied or even suspended where particular exceptional circumstances occur. <\/p>\n\n\n\n
The content of a pandemic clause will vary depending on what the parties to the commercial lease wish it to contain. It is, therefore, essential to consider the scope of any pandemic clause before considering one in a commercial lease.<\/p>\n\n\n\n
You should note that you do not have to limit pandemic clauses to Covid-19 alone but could include all infectious diseases. Typical contents of a pandemic clause may be as follows:<\/p>\n\n\n\n
Pandemic clauses do not usually include payment variations, such as service charges or repair covenants.<\/p>\n<\/div>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n