Date: 10/07/2020 | COVID-19, Corporate & Commercial
To protect themselves all businesses should be following three basic steps:
This should be the easiest step. Who are your customers, who are your suppliers, who are your funders and what contracts do you have in place with all these groups? Are there any issues with terminating or amending these agreements and what would the costs be? Looking at fixed costs such as employees, premises and utilities and understanding the contractual terms which apply to them is also important to allow you to work out what your starting point is in any renegotiation.
At this point there will be more questions than answers. For example:
To add yet more uncertainty Brexit and Scottish Independence haven’t gone away – they also need to be factored into future plans.
Having thought about how you want the business to operate going forwards the next step is to work out which contracts need to be terminated, which need to be renegotiated and which new contracts need to be put in place to reshape the business and allow it to flourish in the post lockdown world.
Businesses need to be resilient to survive and thrive in the face of the post lockdown challenges that lie ahead. Focusing on the three Rs will help to build that resilience and ensure a robust legal framework is in place to protect your business as it changes. Failure to document this correctly could be an expensive mistake. If you need help with contract review, amendment or implementation, please contact the Davidson Chalmers Stewart Corporate Team who will be happy to assist.
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