The Coronavirus Pandemic has affected more than just jobs. Business deals that were struck just a couple of months ago are unraveling, and for good reason.
In this short, 3-minute video, I touch on a couple of legal terms you may be hearing in the news … that might be useful for you as you look at your own contracts and obligations.
- Material adverse effect. This is coming up in the Victoria’s Secret/Sycamore deal collapse.
- Force majeure. This was very common in the aftermath of September 11th.
If you are a solo or small firm owner who’s in a deal that’s onerous right now because you have little or no cash flow – NOW is a great time to try to renegotiate with those contract partners and parties.
Review your contracts and talk to your business attorney about whether those clauses are in your agreements and might provide negotiating leverage — so you can find some financial relief in these challenging times.
(And if you don’t have them in there, consider adding them in the future where appropriate).
BONUS: see my short post on several common “fine print” terms you find in contracts. Be aware of what they are and how to use them to your advantage!