Ignorance of the implications of eviction in business premises may cause us to make mistakes that could cost us dearly. It is important to anticipate and inform yourself in advance before entering into a lease agreement.

It is necessary to know the laws that exist in this regard in order to determine a suitable contract for both the lessor and the owner. The rules are set by both parties but must be clear.

Knowing the basis on which the jurisprudence is based will help you to know your options. We are going to tell you everything you need to know about business premises eviction so that you can make the best decisions.

What does the Civil Code say about eviction in business premises?

If we are guided by the Civil Code, we must refer to 2 articles in particular to define eviction in business premises.

What are they? They are as follows:

1154 indicates that a judge may modify the penalty in an equitable manner when the obligation has been partially or totally breached by the obligor.

The 1255 determines that the contract has been freely formed between the parties and that all that it states has been duly agreed between them.

These two articles, on a quick reading, seem to contradict each other. To give an example: landlord and tenant agreed, by mutual consent, that at the end of the rental period of the premises, the tenant should vacate immediately.

It happens that it fails to do so and incurs a delay. Is the owner entitled to take the case to court and ask for payment for each extra day he occupied the premises? If we are guided by section 1154, a court could say yes.

What does Article 1255 say?

In our example, in the event that a court of first instance had proceeded in favor of the landlord, the tenant could appeal the judgment and ask for a review.

In this one, carried out by a Supreme Court, the judge could bring up this article 1255 and indicate that, if both parties agreed on everything they agreed in the contract, there would be no penalty to apply.

That is to say that, landlord and tenant, having the freedom and autonomy to arrange all the clauses of the agreement, also have the freedom and autonomy to establish their conditions.

This means that, criminally, there is no way to resolve this situation because the parties had their opportunity to define every possible situation through the contract they made and signed.

What does the High Court decide?

In our example, the High Court will define that it would only apply a penalty clause in the event that the circumstances against which the breach occurs are unforeseeable or totally unforeseeable.

This means that, if the damage is great due to this unpredictable situation, it is necessary to go to court and request its intervention so that a penalty is issued to cover the damage caused.

The importance of the contract

The case we present as an example is a real event. The courts ruled, after two instances, in favor of only applying the penalty in case of great damage.

An example of this type of damage can be seen in the Covid19 pandemic. In Alicante the Rebus sic stantibus clause was taken into account. This is present in the Civil Code.

It indicates that the provisions of an agreement may be circumvented only in the event that, for extraordinary reasons or force majeure, the economic situation and the economic environment have changed unforeseeably.

Beyond the situation, the courts have different views and their verdicts may vary. To avoid inconveniences in the event of having to face an eviction in a business premises, it is best to seek advice before signing the contract to clearly establish its clauses.