Due to the current coronavirus closures and disruptions, businesses are encountering substantial problems in many areas of their operations. From supply chain disruptions to restrictions on non-essential business functions, it may be some time before there is a “return to normal” and business owners can breathe a sigh of relief.
In the meantime, handling the enforcement or termination of contracts is of particular concern for those business owners who are finding themselves in a tricky spot. Fortunately, business lawyers such as Rockwell Bates Private Client Lawyers are assisting business owners to navigate these uncertain times and resolve their contracts, wills and estates, and private wealth law problems.
Let’s look at some of the steps and considerations that need to be followed when you are enforcing or terminating a contract during the coronavirus shutdown.
Force Majeure Clauses
If the contract that you are attempting to terminate includes a force majeure clause (Acts of God) then you may be able to have relief from it. Such clauses are typically worded either explicitly or implicitly to include pandemics, which certainly applies to the current situation. This will depend on the particular contract and business lawyers in Melbourne will be able to assist you in determining whether this applies to your case.
If your ability to fulfill a contract depends upon the actions of a third party and that party is unable to operate under the current restrictions, then you may be able to terminate the contract. In other cases, you may simply be allowed to have additional time to fulfill the terms of the contract. Speaking with business lawyers who specialize in the area of contract law will be able to determine whether this can apply to your case.
If you want to enforce a contract, with a supplier, for example, you may have several options open to you. When your current supplier cannot perform in accordance with your existing contract, you may be legally allowed to engage a new supplier as long as your existing supplier has not been contracted with you on an exclusive basis.
If your supplier is attempting to rely on a force majeure clause, you may also be able to receive relief if they do not inform you in a timely manner, as legally defined.
The details of your unique situation need to be handled by professional business lawyers, however. Be sure to clarify your legal responsibilities with an expert before making any drastic changes to your existing supply chain contracts.
Solve Your Contract Concerns With Professional Business Lawyers
There is no telling when the coronavirus pandemic will begin to subside or when the current restrictions on business activity will be lifted. For now, it is important to secure the financial future of your business by effectively navigating the nuances of existing contracts that your business is currently connected with. Contacting a professional business lawyer from our team at Rockwell Bates to solve your contract, private wealth, and will and estate planning concerns is always the best course of action to take.