Commercial leases under Maltese law : past and future challenges

Abstract

Especially throughout the past century, contracts of commercial lease have become an inherent component of the structured meshwork which typically defines the Maltese legal system. This dissertation aims to analyse the challenges faced in the past by parties to contracts of commercial lease under Maltese law, those being actively confronted at present and the potential emerging difficulties in facing rapidly evolving socio-economic constraints. The enacting of the 1931 Ordinance has definitely been the principal source of never-ending challenges primarily faced by the landlord. Over time, the legislator has attempted to gradually phase out the rigid protection provided by law to commercial leases constituted prior to the 1 June 1995. However, the extent to which this has been a success remains questionable. Concerning post-1995 commercial leases, the legislator has managed to revolutionise Maltese rent law for the better, nonetheless leaving pre-1995 leases in the dark. After numerous cases brought forward before both local Courts as well as the ECtHR, the legislator introduced Act X which ultimately set into motion the way forward for landlords of pre-1995 commercial leases albeit, not invariably in a very efficient or considerate way. At the time of drafting this term paper, parties to commercial leases are being currently confronted by a global pandemic which will generate many burdensome challenges particularly for the lessee. This dissertation aims to explain the potential grounds of defence available to the lessee to safeguard his commercial lease in spite of his not fulfilling the general obligations as found in the drawn up contract. The author aims to conclude by giving his humble opinion on the modalities about which the way forward ought to take its course. The situation at present through the liberalisation of the market is substantially adequate. However, there is scope for improvement in order to enable the respective parties to come to face the potential challenges which they will have to encounter throughout the fulfilment of their contract of commercial lease.