Everything changed for you when the pandemic hit. Or did it? What about contractual obligations? It’s a thornier issue than you might imagine! Call Leonard Solicitors LLP (023-8023-4433) if you’re wondering how liable you really are.
You would think the pandemic would have rendered contract disputes moot. In fact, if - for example - you weren't able to make delivery of a large order, you'd be forgiven for thinking your case was, as the Americans say, a "slam dunk."
Think again. English law on this matter is more complicated than you might imagine.
Leonard Solicitors, with over 30 years of experience in commercial, property, immigration, and criminal law, has published a new report noting the challenges faced by businesses upon the outbreak of COVID-19 and detailing the legal ramifications for unresolved contacts.
You can view the relevant post at https://leonardsolicitors.co.uk/can-i-claim-that-a-contract-has-been-frustrated
The legal firm, which helps business owners, entrepreneurs, and investors in all aspects of business law, has prepared the report in response to clients’ confusion regarding how, exactly, the circumstances of the pandemic have impacted contractual agreements.
Disease has historically been recognized to affect the law in dramatic ways. Although it may require more time to realize how much private law has altered as a result of the Covid-19 outbreak, one urgent worry is whether particular contracts have been discharged by frustration. Businesses whose contracts have been adversely harmed or disrupted as a result of Covid-19 may find force majeure clauses - acts, events, or circumstances that go beyond the reasonable control of either party - and the doctrine of frustration to be helpful legal instruments.
However, Leonard Solicitors has investigated the impact of the pandemic on the legal doctrine: the law essentially states that what needs to be demonstrated is that the contract has become commercially impossible to fulfil - but that hardship is not a factor. That is, the legal principle itself is both very narrow and somewhat subjective.
Indeed, the report finds that very few circumstances can be considered a frustrating event. For example, the High Court ruled in favour of commercial property landlords in April 2021, requiring renters to pay rent despite government limitations imposed in the aftermath of the coronavirus pandemic. The ruling was founded on the fact that under English law, the idea of "temporary frustration" does not exist. That is, the law is binary: a contract must be either frustrated or not, one or the other.
Whether you are depending on the doctrine of frustration or a force majeure clause to escape your contractual obligations, Leonard Solicitors strongly advises you to seek professional legal advice from a Commercial Solicitor.
One client commented: "So many good points about them. Very quick and responsive. Very friendly. Their colleague also brought colours for my daughter which was lovely. The 2 solicitors, Inna and Assad were great in helping with my queries and even stayed after 5pm. I have rarely had such a good experience."
The law can be frustrating, but the impact on your business can - of course - be devastating. And the precise wording of your contracts matters - very much.
So go to https://leonardsolicitors.co.uk/can-i-claim-that-a-contract-has-been-frustrated and see if your business might be able to seek redress. Or call 023-8023-4433 to discuss this or any other legal matter.
