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Businesses need to take steps to position themselves for the coming storm.

  •             Review insurance polices
  •            Re-structure/re-negotiate contracts

Contracts are agreements and can be changed by agreement between the parties. However, if no agreement to change  then contracts can be breached but understand the consequences.

Check to see if your contract has a force majeure clause.  This clause essentially excuses your obligations under the contract due to events beyond your control.

If not or if the clause doesn’t cover payment obligations, there are still two other defences available:

  •           Frustration
  •          Impossibility

Both rely upon unexpected events outside your control and you are unable due to those events perform your obligations or performance of your obligations under the contract are commercially impracticable.

Understanding your options places, you in a better position to negotiate with the other party.