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
… Reducing the amount of payments and preserving liquidity