Fairfield Centers, Inc. operates malls and shopping centers around the country. One of its tenants, the Shoe Fair, has leased premises in a small Fairfield shopping center in Evansville, Indiana. Shoe Fair has a five-year lease that began in 2019. In 2020, during the COVID-19 pandemic lockdown, Shoe Fair closed the store. The terms of the lease have a base rent plus a percentage of profits from Shoe Fair's sales. There are provisions in the lease that cover natural disasters and the destruction of the premises. When the lockdown was lifted in June 2020, Shoe Fair informed Fairfield that it would not reopen. Which of the following is true about Fairfield's rights?

Question

Quizplus · Accepted Answer

Shoe Fair still owes Fairfield rent because the lease terms likely require payment regardless of operation status, and a pandemic is not typically considered a natural disaster that excuses performance under standard lease agreements.