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New CORONA regulation in commercial tenancy law to disrupt the basis of business - Jan 27th, 2021


The question, which was still highly controversial in literature and case law until the end of last year, whether a commercial tenant can reduce his rent if he is not allowed to open his business due to a corona closure order (lockdown) (cf. approvingly: LG Munich I, judgment of 22.09. 2020 - 3 O 4495/20; rejecting: LG Frankfurt / Main, judgment of 02.10.2020 - 2-15 O 23/20 u.A.), was now applicable by § 7 of Art. 240 EGBGB, which came into force on 31.12.2020 regulated by law. According to this, it is assumed that a circumstance within the meaning of § 313 paragraph 1 of the German Civil Code, which has become the basis of the rental agreement ("business basis"), has changed significantly after the conclusion of the contract, insofar as rented properties or rented rooms that are not residential as a result of government measures to combat the COVID-19 pandemic, they cannot be used for the tenant's business or can only be used with considerable restrictions.

According to § 313 paragraph 1 BGB, the tenant is entitled to demand an adjustment of the contract, which should usually mean a rent reduction. If such an adjustment of the contract is not possible for any reason or is not reasonable for a part, the disadvantaged party can even terminate the rental contract in accordance with § 313 Paragraph 3 BGB. This assumption, which is now enshrined in law, should make it much easier for commercial tenants and landlords to find mutually agreeable regulations on how to deal with ongoing rent payments during the closures caused by the pandemic.

This article does not replace individual legal advice and only provides general information on the legal situation.
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