Renegotiating lease contracts
As a result of the health crisis, many establishments have been forced to close or have suffered severe working hours and/or capacity restrictions.
The significant drop in income, due to its depth and time extension, has resulted in an unsustainable situation for many businesses, who are unable to afford the costs.
In this context, the extraordinary and overselling nature of the pandemic and its extension to the economic sphere allows the renegotiation of the leases of the properties, through the application of the clause 'rebus sic stantibus'.
The clause 'rebus sic stantibus' (being so things) corrects another historical principle of law in Europe, that of 'pacta sunt servanda' (pacts must be fulfilled).
In this way, when unexpectedly, the circumstances in which the contract was signed change, the parties may withdraw from compliance or renegotiate it.
We can help you in the rent renegotiation process
Accrediting the existence of: (i) a relevant change in circumstances; and (ii) a substantial economic impact on the business.
Assistance in the renegotiation process with the tenant
Determining the appropriate mechanism to reestablish the economic balance between the parts.
Ratifying the report at judicial headquarters
… Reducing the amount of payments and preserving liquidity