A Helpful Guide On How to Prepare For Various Legal Issues and Anticipated Business Difficulties As Arising From Covid-19
Although many businesses are classified as an essential service and remain operational, other businesses are shut down by governmental Order and thereby forbidden from normal function. Some businesses subjected to mandated closures are able to partially function; however, many are fully shuttered. Some businesses ordered closed previously entered into agreements with timelines and schedules for providing goods or performing services; and accordingly, are now unable to do so. This incapacity to meet contractual obligations is expected to raise significant legal issues as those adversely affected seek to protect and enforce rights and responsibilities that may remain applicable despite the mandatory closure. Expected difficulties include:
- Whether a business must return a previously paid deposit when unable to perform a contract;
- Whether a customer must pay for partial services received and what amount is appropriate;
- Whether a business can impose rescheduling of the contractual duties to a later date; and
- Whether a customer can demand performance of a contract if doing so puts employees at risk.
These are just a few of the likely legal issues that businesses and customers will be dealing with.