The abrupt onset of COVID-19 greatly affected the ability of people to perform contracts. It is a general rule under contract law that where a party fails to perform his or her contractual obligations, he or she has committed a breach of contract that gives rise to liability under the contract. It is therefore key for parties to contracts to identify how to manage contracts during this period. Below are some tips:
- Identify what clauses of the contract have been affected, and any liability that could arise on your part.
- Establish the provisions of the contract that can protect you from liability.
- Weigh your options in terms of proceeding with or terminating the contract.
- In the event that you choose to proceed with the contract, try to re-negotiate the contract terms, including provisions tailored to the context of COVID-19; like "Force Majeure"
- If in your best interest, terminate the contract after studying the long-term implications.
The abrupt onset of COVID-19 greatly affected the ability of people to perform contracts. It is a general rule under contract law that where a party fails to perform his or her contractual obligations, he or she has committed a breach of contract that gives rise to liability under the contract. It is therefore key for parties to contracts to identify how to manage contracts during this period. Below are some tips:
1. Identify what clauses of the contract have been affected, and any liability that could arise on your part.
2. Establish the provisions of the contract that can protect you from liability.
3. Weigh your options in terms of proceeding with or terminating the contract.
4. In the event that you choose to proceed with the contract, try to re-negotiate the contract terms, including provisions tailored to the context of COVID-19; like "Force Majeure"
5. If in your best interest, terminate the contract after studying the long-term implications.
edited Sep 22 '20 at 11:45 pm