LEASES IN “COVID-19” TIME

“Goodwill on the part of all those involved is key for minimising the damage.”
The exceptional situation caused by the so called “coronavirus” COVID-19 pandemic poses numerous issues on a legal level. We would like to offer our point of view with regard to urban rentals. How does the state of emergency affect this kind of rental?
Based on the legal principle of pacta sunt servanda (“agreements must be kept”), we must also take into account the provisions of our legal system under different exceptional scenarios, in the face of which we will have to act accordingly depending on each scenario under the principle of proportionality. Thus, for example: situations generated by force majeure or a modification of the essential circumstances under which the contract was formalized (judicial doctrine rebus sic stantibus).
Royal Decree 463/2020, which declares the state of emergency, does not expressly refer to this issue, nor does Spanish law expressly regulate how to comply with such a declaration. The state of emergency does not mean that exceptions of force majeure are justified in a generalised or automatic way, but rather that each specific case must be studied and interpreted in a restrictive manner. However, the state of emergency, the duration and final impact of which is still unknown, does show a very substantial change in the circumstances which requires an exercise in sensitivity and recognition by the parties.
At Feliu Bellapart Abogados, in view of the exceptional nature of the situation and the obligatory reference to the specific peculiarities of each case, we choose to recommend a conciliatory and flexible bilateral attitude which, by means of an express, quick, signed agreement, regulates and channels the situation in a practical and agile manner, avoiding tedious and costly future legal proceedings.
In view of the current extraordinary situation and following the recommendations given by the health authorities, we would like to inform you that as a preventive measure against COVID-19 during the state of emergency, visits to our offices (at Paseo Mallorca, 2, 1º) are currently restricted to matters of extreme urgency. For consultations relating to this article or any issues, we will continue to be available during our usual working hours by e-mail or telephone.
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