Managing Contractual Obligations During COVID-19 Pandemic
The lockdown has been relaxed in some major cities in Nigeria. At the moment, some have lost their jobs; some are on compulsory leave without pay whilst others aren’t optimistic about a full pay by month end. Business owners and daily-paid workers aren’t left out with the looming uncertainties that lie ahead post COVID-19.
During this period, I have had the opportunity to advice clients on the effect of COVID-19 on their contractual obligations with their employees and third parties. Issues around force majeure clause and doctrine of frustration resonate in all these lines of discussions. I don’t know how badly you have been affected; however, there are key lessons to learn in every crisis:
1. Tough times never last, but tough people do;
2.The terms of a contract can make or destroy the entire transaction; ergo, be meticulous about the contents before signing;
3.Avoid gentleman agreement at all cost; ensure that all transactions are documented to avoid stories that touch the heart; and
4.There are opportunities in the midst of the crisis. Possibly, this is an opportunity for you to reinvent yourself, business and work ethics.
Remember, we are in this together and we will sail through this storms unscathed. Kindly reach out to me, if you have any particular events or legal issues encountered during this period.
