It is a contract between two parties, a landowner and a business owner, in which the business owner is authorized to lease a commercial building to the landowner for commercial or commercial purposes. The effect of a force majeure clause depends on the terms of the clause, which vary from one agreement to another. The main aspects of the clause are: Commercial subletting: the right to lease the commercial space to a new tenant. A commercial tenancy agreement protects the legal rights of the landlord and tenant by clearly stating the terms of the lease/rental, thus reducing the chances of future disputes between the landlord and the tenant. Surrender: Occurs when a commercial tenant intends to abandon the remaining term of the tenancy agreement by negotiating with the lessor for an agreement between the two parties. The contract applies by deed or behaviour, such as the delivery of the keys by the tenant and their acceptance by the landlord. Break clauses: This is a clause agreed in the letter of the contract, which allows the commercial tenant and the landlord to terminate the contract before the expiry of the contract, provided that the other party is notified. Rent Review: Rent assessments allow for periodic adjustments to commercial rents at current market levels at the time of the audit. The rental price verification clause explicitly states when the rental price review will take place. Tenants must stick to the authorized use of the lease as well as the limited use of the Planning Act (Chapter 232), for example. B in the master plan. In Singapore, large landlords often have a much stronger bargaining position when negotiating a lease with tenants. As a result, many commercial leases do not contain force majeure clauses that would be useful to a tenant in a COVID-19 situation.
Once the rental agreement has been signed and the necessary deposit paid, the tenant can take possession of the property and may be renovated or renovated if necessary. The most important step for any tenant is to verify their lease (which would have been difficult for a tenant to negotiate with large landlords from the outset) to understand the full impact of COVID-19 on their stores.