Do the current circumstances have an impact on the obligation to comply with contractual obligations undertaken by social organisations in existing contracts with suppliers, customers or others?

  • Regarding the impact of the current situation on existing contractual relationships, the general regime applicable to other organisations (including companies) is also applicable to social sector entities.
  • For more information on this topic, please see our website here.

Our landlord opposed the renewal of, or terminated, the lease of the space where our headquarters are located. What can we do?

  • The COVID-19 prevention, containment, mitigation and treatment measures in this regard also apply to social organisations, under the same terms.
  • For more information on the impact of COVID-19 on leases, please see our website here.

In cases where it has been determined that facilities and establishments must be closed down, what are the consequences of this situation on leases and other forms of property use and occupation?

  • The closure of establishments and facilities and the suspension of activities, in compliance with the relevant measures approved under the national state of emergency, may not be invoked as grounds for terminating a non-residential lease agreement or other property use and occupation contracts, or for justifying the obligation to vacate the property in which the establishment or facilities are located or installed or the cancellation of non-residential lease agreements or other property use and occupation contracts.
    On the other hand, tenants of retail and service establishments open to the public that are now closed or have been legally obliged to suspend their activities under the measures to respond to COVID-19 (including cases where these establishments are carrying out e-commerce activities, or are providing services remotely or via an online platform), can benefit from the exceptional regime allowing the deferred payment of rent. This deferral applies to overdue rent for the months during which the state of emergency is in force and the first month thereafter (with effect from 1 April 2020).
    In such cases, the deferred rents must be paid by the tenants within the 12 months following the end of the moratorium period, in monthly instalments of not less than one twelfth of the total amount due and paid together with the rent for the month in question.
    Finally, the deferral of rents cannot be invoked as grounds for the termination of the respective lease agreement, for any requirement to vacate a property or to demand the payment of penalties.

Is this regime only applicable to establishments that have been forced to close? Which establishments can benefit from this regime?

  • This regime is available to:
    • Retail and service establishments open to the public that are closed or have their activities suspended due to the state of emergency, including those carrying out e-commerce activities, or providing services remotely or via an online platform; and
    • Restaurants and similar establishments, including those that have maintained their activity for the exclusive purpose of preparing meals for take-away or home delivery.

 

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This information is being updated on a regular basis.

All information contained herein and all opinions expressed are of a general nature and are not intended to substitute recourse to expert legal advice for the resolution of real cases.