It is important to consider how the coronavirus (COVID-19) may affect your business relationships. Every situation and contract will be different, requiring its own assessment and consideration of risks and how to respond.
It Could Happen to You . . .
The duration and extent to which COVID-19 will affect business relationships is unclear, but it will have an impact.
- Companies with whom you do business may experience disruptions—anywhere from supply chain interruptions to government-mandated quarantines and travel bans—that prevent them from performing their contractual obligations.
- Lenders may seek further security or assurances before proceeding with loans or become slower to approve new loan agreements or draws on existing lines of credit, thus restricting access to such funds.
- Government processes may slow as governmental agencies redirect attention and resources elsewhere or experience operational disruptions.
While these are just a few examples of how COVID-19 may impact your business, it is important to review your contracts in order to be prepared for what may arise. Before taking action under an existing contract or entering into a new one, you should consider your own legal rights and responsibilities, and those with whom you are contracting.
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