Leases, Contracts and COVID-19: What is Force Majeure?

KVV Inc Attorneys

Published on: 04/03/2025

Landlords must balance recovering costs with retaining tenants in a challenging market. "Force majeure" and "impossibility of performance" are being debated, with courts likely to decide if the pandemic qualifies. Leases with specific clauses will dictate the outcome, while those without rely on common law, requiring tenants to prove the event was unforeseeable, unavoidable, and absolute. Negotiation is key, with tenants and landlords advised to explore options like insurance, lease extensions, rental holidays/reductions, and deferred payments.