Dear friends, colleagues and clients,

We hope that you take good care of yourselves and that you are following the rules on isolation and quarantine in the context of the current pandemic of COVID-19. 

We regret that we also have to inform you about a few individuals who do no follow the current guidelines and who want to advantage of the current situation for reasons of personal gain.  

The Law allows, in exceptional or extraordinary circumstances, individuals or parties to modify their legal agreements due to unforeseen situations beyond their control, such as this state of emergency imposed by the Government.

This blog will not discuss the concepts such as “force majeure”, “rebus sic stantibus”, or “caso fortuito”. This blog aims to clarify the concepts and not to confuse people.

“The Law in exceptional situations, not foreseen by the different parties in their contract, allows the possibility of modifying their legal agreements based on a change of circumstances that is beyond the control of the different parties.”

A local business who has been forced to close during this state of emergency imposed by the Government, who doesn’t have any incomes or any possibility to generating the same income as before the situation of lockdown caused by COVID-19. I do not mean a simple decrease in business income, but a total lockdown of the commercial activity.

Despite the notoriety of this situation, the owner of the local expects the rental income to pay for his needs or even to pay the mortgage of his property.

How can the Law resolve these situations?

Both parties are right and none of them is responsible for the actual situation. And in case that it’s clear that, with the support that the Government may offer (via aid, subsidies, etc.) the business will recover, both parties are obliged to understand each other and to find a solution based on the principles of good faith and a fair balance of benefits, which is what must govern all contracts, even more so in situations like the current one.

“Both parties are obliged to understand each other and to find a solution based on the principles of good faith and a fair balance of benefits”.

On the one hand, the landlord must take into account that contracts which are impossible to fulfill will never be fulfilled. So for a reasonable period it is necessary to be flexible with his demands and his acceptations. Judges will be very attentive to this behaviour. 

On the other hand, the tenant has the obligation to propose a realistic solution to maintain and to proceed the business in the future. A non-payment of 100% of the rent is not acceptable. It would cause an improper and abusive use of the actual situation to obtain an unfair advantage.

For sure, there are many ways to resolve these kind of situations: to reduce the rent and to allow to pay the missing amount of rent over a long period of time; or a temporary exemption of paying the rent followed by a subsequent increase, partially or completely. 

Ultimately, going in dialogue and being creative will not only help, but it will also avoid further legal conflicts, waiting times and unnecessary costs. From experience, we know that it is better to resolve the conflict when it is still in our hands, than to leave it to the hands of the Judge.

“There are many ways to resolve conflicts. But to go in dialogue and being creative will not only help but it will also avoid further legal conflicts, waiting times and unnecessary costs.”

LAJARES LAW OFFICES is at your disposal to help and advise you without any further obligation. We do offer a free model of incident communication, which can be requested by email. A clear communication of your intentions to the other party helps to redirect many conflicts in Law. Today, we believe that the current circumstances are temporary, although we still do not know how the future will pan out.

LAJARES LAW OFFICES will be very attentive to the options that the Law offers us, like tax deductions, aid and subsidies to businesses, as well as to private owners such as discounts on Real Estate Tax (IBI), etc … For example, the Ayuntamiento of La Oliva has already communicated that the payment of IBI-Taxes has been postponed, that it will give discounts on some fees and taxes, and that it will not maintain embargoes, etc.., so it is highly likely that we will continue to see gestures of this nature.

LAJARES LAW OFFICES is at your disposal to help you and advise you without any further obligation. We will be very attentive to the options that the Law offers us.

Civil society has been reacting sympathetically. We see how landlords and tenants have come to unilaterally agreements to lower the rent for many businesses. We see tenants who anticipate and who offer solutions to their landlord. We are also warmed to see how people create great moments which will make this situation we are living bearable and fair. This is admirable and is respected.

What is clearer than ever, is that ALL YOU NEED IS LAW.

We hope you take good care of yourselves and your loved ones.

WE LAW YOU!