Restaurant Leases In the Time of Quarantine – What are the Obligations Now?

It is not surprising that under the current circumstances, restaurants are seeking help to understand their lease obligations. Can they close their restaurant? Can they stop paying rent? The short answer is possibly yes, but not in every instance.Each case is different, so it is important for restaurant owners to consult with a real estate attorney about their own particular situation. This article will present some ideas to consider in that evaluation.

Review The LeaseStart with the lease. The lease applicable to the subject premises may contain clauses that allow the tenant to close its business and stop paying rent; or, in circumstances where the business is required to be closed, cease rental payments upon that event. Additionally, applicable case law may also support your ability to close your business and/or stop paying rent.

The terms force majeure and “Acts of God” appear frequently in articles, newsletters and other publications as more and more businesses are looking for…