Effects of Extraordinary Disruptions on Lease Agreements: Decision of the Koblenz Regional Court
The Koblenz Regional Court recently dealt with the question of whether the economic consequences of the COVID-19 pandemic and the Ukraine war justify an adjustment of long-term commercial space lease agreements under § 313 of the German Civil Code (BGB). The subject was the lawsuit of a commercial tenant who, citing increased operating costs and significant revenue losses, demanded an adjustment of the lease agreement.
Facts and Claim
The plaintiff had already concluded a commercial lease agreement for a business property before the start of the pandemic. Following the outbreak of the pandemic and the later war events in Ukraine, he faced both a significant decline in his revenues and significantly increased ancillary costs. The tenant argued that due to the extraordinary burdens, continuing the contractual agreements was unreasonable. He relied on § 313 para. 1 BGB (disruption of the basis of the transaction) and sought a judicial adjustment of the rent.
Assessment by the Koblenz Regional Court
Requirements for Disruption of the Basis of the Transaction
The court examined the requirements for a claim for adjustment particularly thoroughly. The legislator requires under § 313 BGB that circumstances which have become the basis of the contract have subsequently changed severely, making it unreasonable for both parties – especially the affected contracting party – to adhere to the original contractual obligation. It is generally not sufficient for the external circumstances to change merely within a framework typical for general business transactions.
Rejection of the Adjustment Request
The court evaluated the effects of the pandemic and the Ukraine conflict as restrictions that are fundamentally attributable to general life risks. Such macroeconomic challenges and market fluctuations fall within the entrepreneurial risk area and cannot, on their own, justify a claim for contractual modification. The reasoning of the judgment indicates that a threatened or actual economic burden from unexpected global developments does not necessarily make adherence to the original contract unreasonable.
Reasoning of the Decision
Weighing Entrepreneurial Risks
According to the court, it had to be considered that long-term lease relationships typically presume a risk allocation. At the time of the contract conclusion, parties regularly have to accept that market situations fluctuate and operating costs may rise or revenues fall. Special external events such as pandemics or political crises do not automatically lead to a shift in this risk distribution unless the basis of the transaction is fundamentally affected.
No Substantial Change to the Contractual Basis
Ultimately, the court saw the conditions for an adaptation of the contract as not being met. Neither the COVID-19 pandemic nor the Ukraine war had shaken the contractually assumed balance in such a manner that would make it imperative to redefine the rent. The claim for adjustment was therefore dismissed (Koblenz Regional Court, judgment dated 24.03.2025, docket number 14 O 278/24).
Importance for the Contracting Parties
The court’s decision underscores that there are high hurdles for adjustment claims under § 313 BGB, particularly in long-term lease relationships in the commercial sector. Economic losses or increased burdens due to global crises are generally not sufficient to enforce a subsequent change to the original contractual conditions.
For companies, investors, and asset owners, risk distribution and contract stability play a central role. If there are uncertainties or questions regarding existing or planned leases and their adjustment possibilities, a precise review is required. Further information on the legal design and review of real estate contracts is provided by the law firm MTR Legal Attorneys in the area of real estate law advisory.
