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ARTICLE · 10 AUGUST 2021

Corona-Related Closure - Only Half Commercial Rent Owed

In its ruling of April 1, 2021 (Case No. 8 U 1099/20), the Berlin Higher Regional Court decided that in the event of a government-ordered store closure due to the Corona pandemic, the commercial rent can be reduced by half ...

GermanyReal Estate and Construction

In its ruling of April 1, 2021 (Case No. 8 U 1099/20), the Berlin Higher Regional Court decided that in the event of a government-ordered store closure due to the Corona pandemic, the commercial rent can be reduced by half due to the cessation of the basis of the business, without it being necessary to establish a threat to the tenant's existence in the individual case.

In the case at hand, a tenant (operator of an amusement arcade) had only paid half of the rent for the months of April and May 2020, as he had not been able to use the premises in the contractually intended manner at all since the outbreak of the pandemic. The landlord sued for payment of the remaining amounts for the months of April and May 2020. The tenant defended itself against this by way of counterclaim. The agreed rent was to be reduced by 50% due to disturbance of the basis of the contract. The Court of Appeal now ruled in favor of the tenant.

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