A hotline has been set up for clients to contact us and talk through the challenges you may be facing. If you are in a financial bind, we will provide some initial guidance in relation to credit & finance, supply chain, insurance, restructuring, real estate and construction related matters so together we can work out what your best options are. The number is (02) 8281 7980. You can also visit our online COVID-19 resource page.
19 March 2020 - Michael Cossetto
Most businesses sign contracts and almost never look at them again. Most business relationship just run along smoothly and if there is a hiccup then the parties usually just sort it out. It’s pretty rare when you need to look at the terms of a contract to check what your rights and obligations are.
COVID-19 is presenting businesses with up a bunch of tricky problems and circumstances. Some businesses will now be reaching for the bottom draw to dig out their contracts to see if they have any leverage to negotiate a path forward. Force majeure clauses and other performance related provisions may give one party the upper hand.
But just because one party is in breach, doesn’t mean that its best to enforce the contract to the letter of the law. There are plenty of options available to a party if they have rights under a contract and the manner in which, and the timing of when, those rights are exercised can have a big impact on whether the desired outcome is achieved.
If you are unsure about your rights or obligations under a contract, or how you should deal with a default (whether it’s your own default or a default by the other party) we can help you identify and manage the risks and plot a course to achieve the best result.