There are significant contract implications of the coronavirus

There are significant #contract implications of the #coronavirus that businesses need to seriously consider.

It's very possible that disruptions caused by the Coronavirus (#COVID19) may qualify as a "force majeure" event.

A "force majeure" clause is defined as a circumstance beyond the parties’ control that can make contractual performance too difficult (or impossible). The party invoking the clause may suspend, defer, or be released from its duties to perform without liability.

Your business #contracts may likely contain this provision. LOOK FOR IT.

Companies should take proactive steps to mitigate their risk (or maximize their rights) triggered by a force majeure event, and prepare for interruption to their operations or those of their suppliers/commercial contract counter-parties.

Steps to take:

1) Review your contracts to find force majeure provisions (Acts of G-d).

2) Pay careful attention to the "notice" provisions.

3) Act NOW: (a) collect relevant info and (b) start communicating with your counter-parties.

#Cannabis hardware and #vape companies struggling with supply chain issues should definitely be on the lookout for this potential lifesaver.

#businessadvice #wuhan #crisismanagement #dontwingit #businesstip