Much of South-East Queensland and now Northern New South Wales have been impacted by a severe weather event in the past week, causing significant damage to property, including commercial premises. In this alert, we answer your questions about each party's rights and responsibilities if commercial premises are damaged by extreme weather events.
Most leases contain what is known as a “damage and destruction” clause, which covers the circumstances where the leased premises are destroyed, damaged or inaccessible by an extreme weather event. While each clause will have its own particular drafting, all clauses generally have as a basic term that the tenant's obligation to pay the rent and other money payable under the lease, and to keep the premises in repair, will be suspended (or abate) until such time as the premises can be accessed and used for the permitted use under the lease.
