My family runs a restaurant and the lease is under my sister's name. I am the primary person running the restaurant and my sister's day job is a full-time elementary school teacher. Due to stay-at-home order to minimize the spread of coronavirus, the restaurant is operating at a huge loss and it cannot survive another month. It looks like we have to terminate the lease early (we have 2.5 years to go) but I am afraid that my landlord will try to sue my sister if we refuse to pay the penalty for premature lease termination, go after her earnings from teaching / assets, or ruin her credit. i did some research and it looks like impossibility may be something we could plead if sued. what are my options in dealing with this? thanks for any input.
Generally, impossibility is a good defense in a situation like this, but it will only handle a few month's rent because at some point this COVID-19 issue will pass. The best solution here is to communicate with your landlord, be up front and explain to them the business failed and there is no money to go around in an attempt to reduce or minimize any fees owed or remaining on the lease. You should review any local ordinances regarding rent breaks for commercial businesses during this time of crisis. Goodluck.
