DO COMMERCIAL LEASE TENANTS NEED TO PAY THEIR RENT DURING THE LOCKDOWN PERIOD?
THERE IS A GENERAL PRINCIPLE in the Law of Contracts which requires that in instances of supervening impossibility of performance, a party who is prevented substantially from performing in terms of the contract is relieved from their obligation to perform in terms of that contract. In this regard, if there is a superior force which prevents a person from performing in terms of a contract this will be construed as vis major and regarded as a form of supervening impossibility to perform. ONE FORM of vis major is casus fortuitus, which is ordinarily defined as an uncontrollable accident or act of God. In this regard, an epidemic such as Covid-19 would in our opinion be regarded as a casus fortuitus event. If a tenant is able to show that as a result of Covid-19 they do not have beneficial occupation of the leased premises, i.e. do not have access to the leased premises, and further that the epidemic was unforeseen, uncontrollable and the direct result of an inability to per...