When the COVID-19 pandemic started, governments worldwide
reacted to this unprecedented health crisis with similarly
unprecedented public health measures, including orders for
non-essential businesses to close their doors to the public.
Many businesses suffered significant revenue losses because of
these closures. Without income, many commercial tenants failed to
pay their monthly rent payments.
Force Majeure Clauses
Many leases include 'force majeure' or
'Acts of God' clauses. These clauses typically provide that
in the event of an 'Act of God' (e.g. flood, fire) or
social upheaval (e.g. riot, strikes), the parties are excused from
their obligations under the lease.
Do COVID lockdowns qualify as an "Act of God"? If so,
does it excuse a tenant from paying rent?
