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The consequences of the Corona virus for your ongoing contracts: Carry out a timely inventory!

The consequences of the Corona virus for your ongoing contracts:  Carry out a timely inventory!

The Corona virus has had an impact on a large number of companies, perhaps yours as well. Not just in regards to your employees, but also to your ongoing agreements and contracts. Are you still able to carry out your obligations? And what options do you have for getting out of the agreement obligations within the context of this health crisis?

The impact that the Corona crisis has or will have on certain agreements will depend significantly on the specific facts and circumstances surrounding each case. Reliance on force majeure may be possible in some circumstances. Still, this does not change the fact that this crisis demands proactive action.

What can you do?

1. Inventory your contracts.

Keep the following in mind:

  • Force majeure clauses.
  • Contractual possibilities of terminating an agreement and the consequences thereof.
  • Arrangements concerning the manner and term within which it must be indicated that arrangements cannot be complied with or cannot be complied with on time.
  • Agreements regarding obligations to limit losses.
  • Guarantees and indemnifications.
  • Conditions regarding suspension
  • Agreed targets and ratios.

2. Assess whether the ongoing obligations can be complied with. 

If not, analyse how non-compliance should be reported.

3. Search for alternatives. 

Are there other possibilities to still comply with obligations?

4. Assess the consequences if you are unable to comply with contracts.

5. Communicate with other contracting parties on time and correctly.

6. Formulate an action plan to limit the consequences of the Corona crisis and control them as much as possible.

Unable to find a solution?

Agreements often include a lot of professional legal jargon. Do you need assistance in analysing and making an inventory of your current contracts? Or do you need assistance in drawing up an action plan? We are pleased to help you! 

Do you have any questions?

Contact mr. M.C.A. (Marc) Lichtenberg RB, Tax Advisor immediately at HLB Van Daal in Waalwijk.

Send an email or call +31 (0)416 33 05 05
mr. M.C.A. (Marc) Lichtenberg RB