Contracts and Coronavirus
The COVID-19 pandemic has created many uncertainties about how long and to what extent business will be interrupted and how business relationships will be impacted. The only thing that is certain is that there will be interruptions.
- Even if your business continues without interruption, companies with whom you do business may experience supply chain interruptions, changes to regulations, or staffing issues that may prevent them from meeting their contractual obligations.
- Lenders may restrict access to capital that is normally relied on—loans may be approved at a slower pace, draws on lines of credit may be processed more slowly, or lenders may seek additional security or guaranty before proceeding with loans.
- Government licenses, approvals or processes may slow as governmental agencies direct attention and resources to the effects of the virus and experience interruptions of their own.
While these are just a few examples of how COVID-19 may impact your business, it is important to review all outstanding contracts in order to ready your business as much as possible against what may happen. Before acting under an existing contract or entering into a new one, you should consider your contractual rights and obligations, and those of the other party.