The economic disruption caused by the COVID-19 pandemic inevitably exposes businesses to heightened legal risk. In particular, counterparties may seek to delay, avoid performance and/or terminate agreements. This may be either because COVID-19 has legitimately prevented them from performing their contractual obligations, or because they are seeking to use the pandemic as an excuse to extricate themselves from a bad deal.
We have published a guide which provides a general overview of the common bases for avoiding contractual obligations in commercial contracts, including a comparison of the key rights and remedies. Click here to access the guide.
The banking litigation team has also prepared a more detailed COVID-19 disputes “handbook” for in house legal teams at banks, specifically considering the key clauses engaged in standard financial market documentation and sharing our market insight as to the types of litigation risks our clients are already seeing in each asset class. If you would like to receive a copy of the handbook, please get in touch with your usual HSF contact.