• Legal advisor: Lease contracts are terminated or reduced according to the level of the damage

    07/06/2020

    ​In a remote meeting organized by the Asharqia Chamber:​

    Legal advisor: Lease contracts are terminated or reduced according to the level of the damage​

    Legal adviser Dr. Salman Al-Dhafiri stressed the possibility of considering rental contracts during the period of the Krone pandemic legally with “annulment”, or “rebalancing”, depending on the use of the leased property, or the decrease or increase of its market value, and the level of damage caused by the pandemic if it is comprehensive Or partial.

    Al-Dhafiri said in a meeting held by the Asharqia Chamber represented by the Real Estate and Urban Development Committee under the title (lease contracts and their impact on the real estate sector in light of the Corona pandemic ”Sunday (7 / June / 2020) that the lease contract is defined as It is one of the “necessary” contracts, which can only be canceled with the consent of both parties to the contract, or the occurrence of contraindications and emergency conditions like the sale, unlike “award” contracts like the agency contract that can cancel the contract at any time, without giving reasons.

    Accordingly, the pandemic of the krona imposed a new reality in the commercial sector, and created a number of issues and ideas in the legal space, but - fortunately - that we have in Islamic law rules that define and address all problems at any time, and under any circumstance, the pandemic represents an emergency It requires a certain legal procedure, especially if benefits or certain damages, disputes and the like are not interrupted.

    In this regard, Al-Dhafiri believes that Islamic law calls for balance, and it operates according to the principle of “no harm or harm”, according to which basic rules have been issued that are applied in the case of necessities in which even prohibitions are permitted because the noble Sharia does not accept harm to anyone, especially if it is this damage came out of the will, such as earthquakes, volcanoes, and epidemics, as is the case of a pandemic coronavirus.​

    In this regard, Al-Dhafiri recalls that the one who determines the damage (whether partial or total) is the judge, but this is based on what experts and legal experts estimate, noting that some activities do not need to prove the occurrence of the damage, such as when someone hires a place to be A benefit for a barbershop or a fitness center, and a formal decision to close it due to the pandemic has been issued against him, in which case the work is suspended, and the benefit from the rented eye is not mentioned, so he has the right to cancel the contract, according to a judicial order, the ruling of which is issued according to custom and based on What the experts decide in this aspect.​

    He pointed out that some tenants may take advantage of the pandemic period and try to evade the contract, or that some lessors see the matter as an opportunity to break the contract, in which case a referee - by judicial order - will refer to the custom to determine the damage and the damage, and the desire of the lessor or lessee can never be relied upon. This is because the lease contract - as has already been said - is a contract that is not canceled except for the presence of the same harm as the sale, except for a reason and circumstance that requires it.

    He stressed the need for settlements to be fair, and compromise and conciliation between the two parties to the lease are the best in all cases, for “peace is good.”​


© All Rights Reserved for Asharqia Chamber