Legal

Alert
24 March,2020

Lease agreements during the state of emergency and GEO

29/2020

Measures ruled by By the Military Ordinances no. 1 and 2 adopted during the state of emergency,
the authorities authorities established a series of limitations as follows:

(i) starting on 18.03.2020, the activities of serving and consuming food and
alcoholic and non-alcoholic beverages operated by restaurants, hotels,
cafes or other public establishments, in the premises intended for this
purpose, indoors or outdoors, are suspended;

(ii) starting on 22.03.2020, the activities of selling products and services in

commercial centers where several economic operators activate, except for
the sale of food, veterinary or pharmaceutical products and cleaning
services, are suspended.

Measures aimed to In order to minimize as much as possible the negative effects of the limitations of
support the the state of emergency, through EGO no. 29/2020 authorities took certain
economic operators measures to protect small and medium-sized enterprises, freelancers, national
sports federations and sport clubs. These measures are relevant to ongoing
contracts, including the performance of lease agreements.

Measures for lessee Article X (1) EGO 29/2020 regulates the postponement of the payment of the rent
protection and utilities related to the premises used as head office or secondary office by the
above-mentioned categories in the following situations:

▪ the beneficiaries interrupted their activity, totally or partially, as a result of

the decisions of the authorities for the duration of the state of emergency;

▪ the beneficiaries hold the state of emergency certificate issued by the

Ministry of Economy, Energy and Business Environment.

So far the authorities have not adopted and published the legislative document
regulating the conditions and the procedure for issuing the state of emergency
certificates.
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According to art. X paragraph (2) of the same act, small and medium-sized
enterprises can invoke the force majeure, based on the state of emergency
certificate, but only after completing the stage of renegotiation between the parties.

The contractual partners are thus encouraged to open the way of negotiations
regarding the schedule or timing of the payments thus postponed, after the
termination of the state of emergency, since this is not a waiver of the payment
obligations of the lessee.

Measures for lessor According to the provisions of art. V paragraph (1) of EGO no. 29/2020, the
protection payment deadline of the first instalment of the building tax due by the lessor is
postponed by 3 months, namely until June 30, 2020.
During this period, the Romanian law maker tries to regulate some instruments that
will minimize the effects of the restrictive measures imposed during the state of
emergency, however their practical implementation in the lease agreements
involves the prudent solution of the negotiations and adaptation of the agreements
by the parties based on the clauses already agreed, taking into account the
specificity of the partnership relationship built between them.

The information provided herein presents general information and should not be relied on as legal
advice when analyzing and resolving a specific legal issue. If you have specific questions
regarding a particular fact situation, please address your queries to:

Voicu & Filipescu SCA, at office@vf.ro or telephone no. +4021 314 02 00