
INTRODUCTION
COVID-19 has had a major impact on contractual obligations all across the globe. With nation-wide lockdowns being imposed in countries across the globe, the world had faced major economic crisis. Parties have been unable to fulfil their Contractual obligations and the pandemic has proven as a true test of the effectiveness of contracts. Sub-standard contracts have rendered a lot of parties remediless and have caused not just financial but reputational loss to businesses.
Contracts are the heart and soul of any business arrangement.They define and categorically lay down the terms and conditions governing the obligations of the parties to the Contract. Herein below is the impact that COVID-19 has had on Contracts while identifying the existing ambiguities in contracts and their possible solutions. CONTRACT MANAGEMENT IN THE POST COVID-19 ERA Post lifting of lockdown, we have adapted to a new normal i.e. post-COVID19 world. The post-COVID19 era necessitates the implementation of certain Pandemic Legal Intelligence strategies by the businesses. This includes implementation of certain new risk analysis and identification and impact assessment measures in commercial contracts. Certain steps that should be taken by the businesses and industries in the post-COVID19 era includes:
- Contract Management Policy
- Incorporation of an ‘inclusive’ force majeure clause
- Fair and practical exit mechanisms
- Incorporation of mediation
Commercial contracts can have major repercussions for businesses if these contracts are not analysed diligently.It is important to engage into professional risk analysis of commercial contracts in the post-COVID era to continue working as a profit making organisation. Contemporary business practices need to be incorporated which cannot be done without engaging in a mechanism of proper checks and balances with regard to the legal obligations of the parties to a contract. Commercial contracts form the basis of any business deal. If the groundwork is not laid properly, it is impossible for the commercial strategy to succeed. The world has already witnessed the shortcomings of sub-standard and open-ended contracts that has led to huge financial losses to businesses around the globe due to the pandemic. The Post-COVID era must be welcomed with contemporary strategies. For any query or feedback, feel free to connect on info@amlegals.com