RA
Ralph A

1 reviews | Active since Oct 2009

02 Jan 2021, 12:35

8 Fawcett's Avenue, Llandudno known as Two Berry House - Penalty imposed for cancellation of lease, as a result of COVID-19 Regulations

The COVID-19 pandemic has been a learning experience for everyone, including the hospitality industry. An issue, which has relevance, arises as a result of lockdown regulations, imposed by government. Should a penalty of 10% of the total rental charged, be imposed by the landlord, because the lessee could not meet his obligations, as a result of lockdown regulations? Is this the norm for the industry? The lease did have a clause - "Governing Law", which stated, that the validity and performance thereof, shall be governed in all respects by the Law of the Republic of South Africa. Cancellation of the lease arose as a result of the above. An argument raised by the lessor, was that the property could have been let to another party. The lessor was informed in advance, that there was a possible cancellation, because of the implementation of lockdown regulations, and the uncer*****y of whether the lockdown regulations were to be relaxed. The landlord could have made contact, that there was another interested party, and whether the lessee was still interested in letting the property. In conclusion, I can only comment, that a lessee (guest), should take into consideration, the impact of lockdown regulations, and the cancellation of accommodation, as a result thereof, and the penalty attached thereto. Certainly, in regard to the accommodation offered by the above-mentioned establishment, the caveat to a potential lessee, is that a penalty will be imposed, on the cancellation of the lease, as a result of lockdown regulations.

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