Legal Opinion on Majeure Clauses for Sub-lease agreement and Lease agreements

Mr. Z

Address….

Dear Sir,

RE:      Legal Opinion on Majeure Clauses – Sub-lease agreement and Lease agreements.

We refer to your email dated _____________ on the above subject.

The Force Majeure Clauses of the Sub-Lease Agreement versus the Lease Agreements are reviewed below:

Lease between Date of Lease Agreement Force Majeure clause
……………………. 30 March 2006 “In case of violence due to war, civil war or civil commotion or of fire, storm, tempest, flood or other irresistible force causing damage to the demised premises rendering it unfit for use and occupation, the Lessor shall, if so desired by the Lessee and to the reasonable satisfaction of the Lessee, restore and reinstate the demised premises immediately at the Lessor’s expenses and meanwhile the demised premises or the damaged part thereof shall be vacated and the rent or a fair proportionate part thereof shall abate until the demised premises shall be restored and reinstated, and made ready for occupation provided always that if demised premises shall not be restored and reinstated and made ready for occupation, the Lessee shall be at liberty without prejudice to their rights under any other provisions of this lease to give notice in writing to the Lessor determining the said term and thereupon this lease shall stand absolutely determined without prejudice to any claim by either party against the other in respect of any antecedent breach of any covenants conditions herein contained.”
……………….. 17 December 2006 same
…………………. 24 August 2006 same
…………………. 28 September 2006 same
……………… 29 August 2006 same
……………………… 27 December 2006 same
………………….. 2 March 1998 same
………………….. 26 September 1999 same
………………………. 1 September 1995 same
………………….. 31 January 2005 same
…………………….. 28 June 2000 “In case the demised premises or any part thereof shall at any time during the said term be destroyed or damaged by fire, earthquake, storm, or tempest or any other irresistible force, so as to be unfit for occupation and use, this lease will at the option of either party be liable to be determined but in the event of the Lessee desiring the lease to continue and the Lessor agreeing to repair the damage or injury, the Lessee shall vacate the whole or such portion of the demised premises as may be required to enable the Lessor to repair or restore them to their former status and condition and in such event the whole or a proportionate part of the rent as the case may be shall abate until the demised premises are again rendered fit for occupation and use from which time the Lessee shall again continue to pay the full rent hereby reserve.”

Apart from the lease agreement between Mr. ………….. and COMPANY 2 dated 28 June 2000, all the other lease agreements have identical force majeure clauses. However, the lease agreement dated 28 June 2000 shall expire on 30 June 2007, as such we have been informed by COMPANY 1 that this lease will not be sub-leased by COMPANY 1; ZPBL shall enter into a lease agreement with Mr. ……………. after 30 June 2007.

Regarding the remaining lease agreements, COMPANY 1 cannot allow ZPBL to enjoy force majeure clauses in the Sub-Lease Agreements which give ZPBL better rights then what COMPANY 1 itself enjoys under the Lease Agreements. In view of the above, we suggest that Article 8 of the sub-lease agreement should be deleted and replaced with the following:

“Article 8: Force Majeure

ZPBL shall not be responsible for damages to the Premises which are caused due to Acts of God. In case of violence due to war, civil war or civil commotion or of fire, storm, tempest, flood or other irresistible force causing damage to the demised premises rendering it unfit for use and occupation, COMPANY 1 shall ask the Landlord, if so desired by ZPBL, to restore and reinstate the demised premises immediately at the Landlord’s expense and meanwhile the demised premises or the damaged part thereof shall be vacated and the rent or a fair proportionate part thereof shall abate until the demised premises shall be restored and reinstated, and made ready for occupation provided always that if demised premises shall not be restored and reinstated and made ready for occupation, ZPBL shall be at liberty without prejudice to their rights under any other provisions of this lease to give notice in writing to COMPANY 1 determining the said term and thereupon this sub-lease shall stand absolutely determined without prejudice to any claim by either party against the other in respect of any antecedent breach of any covenants conditions herein contained.”

If you have any further query, please do not hesitate to contact the undersigned.

Thanking you,

Yours truly,

………………….

For: “The Lawyers & Jurists”