Force Majeure Clause Lease Agreement

- December 09, 2020

4. Does the “Force majeure” clause give a waiver or suspension of payment under a lease or lease? Recently, an Illinois court found that the Illinois governor`s executive was for the first time a case of force majeure in the context of the COVID 19 pandemic. As a result, the tenant was excused from paying part of his tenancy commitment after the governor asked the businesses to close in mid-March 2020. Despite the increase in force in the tenant`s tenancy agreement, which explicitly stated that the lack of money was not a discharge basis, the court found that the executive order to close the business constituted an “act of government” expressly stated in the force majeure clause. As the “force majeure” clause is governed by the Indian contract Act 1872, the Supreme Court stated: “In the event of force majeure, it considers the positive law of Section 56 of the Indian Contract Act 1872. The language of the contract or the language of the lease determines whether COVID-19 falls within the scope of a force majeure case under this agreement. The application of force majeure should therefore be considered on a case-by-case basis. The term gave a report on what is meant by “force majeure” is not only the French term “vis major” but further than the meaning. Several judges agreed that, when a “force majeure” is referred to, the party`s intention is to protect the exporting parties from the consequences of anything over which it has no control. 3. What is the “force majeure” clause in commercial leases or leases? The Court explained in detail the force majeure clause on contractual obligations.

The Court held that the relationship between a lessor and the tenant, a lessor and a taker, as well as a licensee, depended on the terms of their respective contracts and that the issue of a waiver, suspension or order in the event of payment of rents depended on the terms set out in each contract. Referring to the above decisions, the Delhi Supreme Court confirmed that Section 56 of the Contracts Act did not apply to a lease and other similar contracts, which are “executed contracts” and not “execution contracts”.

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