The spread of COVID-19 potentially undermines the viability of a huge range of commercial arrangements, fromcontracts for one-off (or multiple) events to long term supply contracts. The reasons why these arrangements are put in commercial jeopardy will vary, but may include:
- Lack of customers, employees, supplies, third party support or services.
- The cancellation of the event to which the arrangements relate (for example a package tour to a sporting tournament which is cancelled).
- Active state action, for example the requisite state authorisation or licence not being available, Government advice to cancel or close, a ban or the state requisition of essential facilities.
Underlying any such commercial arrangements are almost certainly contractual terms. If the existing arrangements are no longer viable, there may be two options. Firstly, cancellation which may have multiple consequences. Secondly, renegotiation, in order that the arrangements become viable for all parties.
Your can download this paper below, this paper considers the contractual and other potential legal issues arising when considering cancellation or renegotiation in these circumstances.
