As a result of the Coronavirus (COVID-19) pandemic, myriad contracts, leases, and business relationships have been significantly impacted. Many of these contracts may have been fundamentally altered and require renegotiation, or may even no longer be binding.
Contract Evaluation and Negotiation
It is important to understand which of your businesses’ contract obligations have been affected in what manner, and whether by force majeure, frustration of purpose, impracticability, impossibility, or otherwise these obligations remain binding. Businesses should review all of their contracts and seek to formulate a viable contingency plan and/or negotiate new or revised contractual terms.
Dealing with Creditors, Landlords and Collections
Due to the nationwide economic suffering that has resulted from COVID-19, businesses are dealing with an onslaught from a variety of creditors including landlords, suppliers, transportation companies, and the like. It is imperative for businesses to manage these claims and secure the time necessary to obtain the Payroll Protection Program or Economic Injury Disaster Loan funds to keep your business running.
For more information about the Payroll Protection Program or the Economic Injury Disaster Loan, please refer to the details offered in our prior blog post, How the CARES Act Can Help Small Businesses and Non-Profits Sustain the Pandemic.
For more information
This update was written by Greg N. Hoffman and C. Alexander Chiulli. For questions about contract reviews and creditor claims during COVID-19, please contact Greg or Alex at 401-273-7171 for assistance during these uncertain times.
Barton Gilman provides experienced and innovative legal advice on every facet of small business and nonprofit formation, governance, financing and operations. We regularly assist our clients with employment matters, contracts, compliance with state and federal statutes, trademark and intellectual property, bylaws and policies, and liability claims.