Frustration-of-Purpose Use In Commercial Leases During the Pandemic

The use of the frustration-of-purpose doctrine to absolve commercial tenants of their obligation to pay rent could signal headwinds for the commercial real estate market — and the economy more generally.

7 minute read August 01, 2021 at 12:09 AM

Joshua Wurtzel

Frustration-of-Purpose Use In Commercial Leases During the Pandemic

For the last year, commercial tenants — including some big-name tenants like Hugo Boss, Christian Louboutin and Gap — have been arguing that their rent obligations should be eliminated or reduced during the pandemic under the frustration-of-purpose doctrine.

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