Force Majeure Clause In Lease Agreements

In particular, the alleged financial inability of a party to honour a contract rarely excuses non-compliance. [11] Tenants should therefore look for facts and events dictated by COVID-19, which makes it impossible to execute leases. The application of the frustration doctrine in commercial and lease contracts has been widely debated if Cricklewood Property and Investment Trust Ltd. vs. Leighton`s Investment Trust Ltd(1945) decided that a ninety-nine year-old lease would not be frustrated and that the tenant would not be relieved of its commitment, only for temporary hindrance to the use of the immovable property. In many of these similar issues, the courts of England have found that a mere interference with the possession of property rights must not lead to frustration of the contract or lease by the lessee`s obligation to pay. . . .