As the value of the pound fluctuates and falls and inflation rises in the UK, you may be wondering how you should adapt your contracts to work through this difficult time.
Alternatively, you may want to review the clauses in contracts to see how they might be beneficial during this time.
Termination clauses should be considered in times of financial struggle.
They can allow a customer and both parties in some cases, to terminate a contract at convenience as long as there is the necessary notice given.
Therefore, during this uncertain time, you should pay even more attention to your contracts to ensure you are not breaching any of the provisions made within the clause.
Instances of termination provisions could be failing to deliver information to meet the other’s obligations, failure to pay any amount due or experiencing a change in the control of the company.
Breaching these provisions would result in the other party being able to terminate the contract and this could cause different cash flow issues for your business.
Force majeure can cover businesses in the face of unprecedented events such as natural disasters.
However, the standard force majeure clause does not cover the economic difficulties that a country may be facing.
But you can check if your contracts do have any reference to this type of issue so that you are fully prepared for what may come.
You should continually review contracts during any unusual situations so that you are well-informed on the protections you have in place during difficult times.
For more advice on this, get in touch.