Vacating without notice or 30 days notice. Vacating without notice or 30 days notice.

3 years ago

I hv rented a commercial place. According to aggremment 3 yr lock in period is there and 6 months notice prior to vacating.
Due to lockdown and covid condition wont be able to continue it and wants to vacate the premises. Owner is asking me to give him months notice..rent is huge, paying without using is not feasible for me. What are my options?

Anish Palkar

Responded 3 years ago

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A.1) Where was the commercial place you had rented ?
2) What was the deposit and the rent when did the agreement ? Is it a Registered Agreement or a Notarised one?
3) what was the purpose of your business of the commercial agreement you will have to explain it out to the owner and let him know that the lockdown situation was not known to you prior to beginning of this business and so by default you will be e having losses and many more anticipated losses.
4) Ask for refund of Deposit, make the owner understand that the problem of yours is a genuine one and so you would wish to exit the agreement. If things work out fine or
5) You can send a legal notice to him through a lawyer regarding the same for refund of deposit as actual business situations are out of your control.

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Manoj Kumar Welegal services

Responded 3 years ago

A.You can vacate the premises on payment of current month rent.
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Ayantika Mondal @ Prime Legal

Responded 3 years ago

A.You have to abide by the agreement or amicable settlement.
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Anik

Responded 3 years ago

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A.You have to abide by the agreement or amicable settlement.
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Rajagopal Sripathi

Responded 3 years ago

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A.Hi
You may issue notices to land lord citing covid and economic fall out as reasons for vacating the premises.
Covid 19 has been declared as an emergency and hence may be used to strike down the lock down clause .
6 MONTHS notice is too long and contrary to known laws and hence this condition will be void in courts.
So, issue vacate notice through your lawyer.
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Kishan Dutt Kalaskar

Responded 3 years ago

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A.Dear Sir,
You can vacate immediately and fight on the following grounds and in lock down no body getting business and courts will take your defense as valid and ask him to go to the Court for damages etc. If he refuse to return your advance then approach the civil court. Please give me Rank 5 if you feel my answer helped you.
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Force Majeure Clauses In Contracts
The advent of civilization in human life gave birth to various forms of interactions amongst the individuals. Numerous aspirations have led to passion for monetary superiority and the art of profit making thereby giving rise to business activities. People carry out their business with one another in the form of sale and purchase which may be either for goods or services. In order to maintain cordial relations amongst themselves and ensuring smooth functioning of their business, parties often enter into contracts which bind them on agreed mutual terms and conditions.
Composition of Contracts
The contracts between the parties comprise of various clauses which regulate their responsibilities and conduct for the situations which they can anticipate. However, there arise circumstances which make the performance of the contract impossible. In case such supervening events arise for any reasons being beyond the control of a party, such party may be exempted from performing its due obligations while the contract stands frustrated.
Frustration of Contract
As per Section 56 of the Indian Contract Act, 1872, an agreement to do an impossible act is described as being void. The said provision also relieves a party from the discharge of their duties in event of an intervening act which renders the performance of the contract impossible or unlawful.
Grounds for Frustration
The law recognizes the applicability of the Doctrine of Frustration on the following grounds:
• Destruction of Subject matter- Where the contract cannot be fulfilled owing to the failure of the essential element to continue in the state which it was expected to be at the time of formation of the contract. Destruction of the music hall (Taylor v. Caldwell1), loss of crops (Howell v. Coupland2)have been identified as some of such situations.
• Change of circumstances- Where the circumstances change post entering into the contract making the performance of the same impossible. Explosion of ship boiler preventing further journey to transport the goods (Joseph Steamline Ltd. v. Imperial Smelting Corp.3 is one example.
• Non-occurrence of contemplated event- Where the value of the performance is destroyed due to non-occurrence of the contemplated event which lays the foundation of the contract thus making its performance impossible. Ex. In case of Krell v. Henry4 where room was to be hired only for the purpose of viewing coronation ceremony which got cancelled.
• Death or incapacity of a party- Where the contract can no longer be performed due to the death or incapacity like illness (Robinson v. Davison5) the lead pianist could not perform being ill) of one of the contracting parties.
• Government or Legislative intervention- Where new Government/ Legislative policies prevent the performance of the contract, e.g. ban on sale/purchase of specific products fundamental to the contract (Boothalinga Agencies v. V.T.C. Poriaswami6).
• Intervention of war- Where outbreak of war makes it impossible to fulfil the contractual obligations (A. F. Ferguson & Co. v. Lalit Mohan Ghosh7)
Force Majeure
Force Majeure meaning "superior force" refers to such situations which obstruct the continuation or lawful existence of a contract amidst the parties. The inclusion of such clause in the contract allows a party to suspend or terminate their duties and obligations in case of occurrence of an act which may be classified as Force Majeure.
Usually parties mutually decide over the list of events to be categorized under this clause which include acts of war, riots, fire, flood, hurricane, earthquake, explosion, strikes, lockouts, slowdowns, prolonged shortage of supplies, governmental action prohibiting or impeding any party from performing its respective obligations under the contract causing its frustration.
In the news8
Recently, Reliance Industries, one of the leading business groups of India has announced a Force Majeure on gasoline exports from its Jamnagar site although the exact reason for the same has not yet May kindly see the been disclosed. In case of establishment of the Force Majeure, Reliance Industries would be able to avoid their duties as stated in their respective contracts with their clients.
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