Litigation related to commercial leases often begins with a violation of lease terms. Commercial leases are long, complex documents that include clear requirements for both parties. Landlords may have certain maintenance and repair obligations, while tenants must abide by restrictions on the use of the property and must pay rent, as well as any other fees assessed by the landlord.
Occasionally, there are circumstances in which a commercial tenant might want to end a commercial lease early. If the lease includes a force majeure clause, the landlord should work with the tenant. Going to court may be necessary if they refuse to honor the force majeure clause.
What does a force majeure clause do?
The purpose of a force majeure clause is to absolve the party signing the lease of contractual obligations if circumstances outside of their control disrupt the business. Natural disasters, acts of war or acts of terrorism are all examples of circumstances that could trigger a force majeure clause.
If a business cannot operate due to unpredictable and uncontrollable circumstances, then the landlord should work with the tenant by allowing the early termination of the lease or allowing them to cease making payments until the resolution of the issue. If landlords insist on collecting rent or initiate eviction proceedings, those acts could damage a business’s finances and reputation. Litigation to enforce the actual terms of the lease may be the best solution available.
Reading through an original lease and reviewing documentation of the unusual circumstances with a skilled legal team can help business leaders determine if their landlord has violated their lease and if a business lawsuit may be necessary. An attorney’s guidance can be helpful for business leaders worried about evictions and other legal consequences when they cannot do business due to unforeseen challenges.