Constitutional Court overturned decree on early termination of commercial leases



[ad_1]

With a vote of five to four, the Constitutional Court overturned Decree 797 of 2020, which allowed that, due to the pandemic, the tenants of business premises unilaterally terminate the lease contracts until August 31.

It is worth mentioning that to put an end to the agreement, the tenant had to pay a third of the penal clause agreed in the contract or the equivalent of a rental fee. The measure applied to sectors that, as of the date the decree was issued, were still not allowed to work.

The Constitutional Court declared the decree unenforceable, because it stated that the autonomy of private will and contractual freedom could not be violated. In addition, he stressed that this decree was not necessary in the framework of the State of Emergency, because the Commercial Code and the Civil Code have tools to solve the situations that may have arisen.

With this decision, there are now five of the more than 100 decrees issued by the Government during the State of Emergency, which the Court has declared unenforceable.



[ad_2]