Excerpts and reference to a recent Kock Advocaten newsletter in regards to a business lease tenant of a business that has been closed as a government requirement due to COVID-19 preventative measures.

A frequently asked question is, “Does the (business) tenant have to keep paying the rent during this period?”

“On the one hand, the unforeseen event does not release the tenant to fulfill its payment obligation under the lease. On the other hand, it is quite conceivable that in the business relationship of the parties and based on the standards of reasonableness and fairness the negative consequences of the corona closure cannot only affect the tenant and carries only by the tenant (art. 6: 257 BW), now that during the corona measures none or limited enjoyment of rent is provided (art. 7: 207 in conjunction with 7: 204 paragraph 2 of the Dutch Civil Code).”

“In a recent case in Curacao the judge concluded that taking into consideration the above, as well as the mutual interests of parties, the judge decided that the rent over the period that the business was ordered to close by the government should be divided between both parties equally.”

These are times for all parties to be aware of their obligations both as a landlord and as a tenant.

 

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