Home
/
Our Insights
/
Article Detail
/
Home
/
Home
|
Login
Our Team
Our Expertise
Our Insights
BOOK CONSULTATION
SUBSCRIBE
Our Team
Our Expertise
Our Insights
You can share this article in the following networks2:
The legal implications of the Covid-19 outbreak
23 March 2020 ,
Johnny Davis
752
As businesses worldwide navigate the challenges brought on by the rapid spread of COVID-19, it is now more essential than ever that businesses be ready with solutions to address risks associated with the coronavirus outbreak.
Postponed or cancelled commercial transactions, disrupted supply chains, a decrease in corporate turnover, apprehensions over commercial viability of contracts, event cancellations and decreased consumer activity are all playing a crucial part in the markets and businesses around the globe.
With the number of cases in South Africa currently increasing, we have noted some immediate legal consequences on businesses across all industries which include, but are not limited to, the following:
Cancellation of commercial contracts due to challenges in meeting contractual obligations and the use of
force majeure
clauses, meaning unforeseeable circumstances that prevent someone from fulfilling contractual obligations.
The interpretation of merger and acquisition contracts due to the inclusion of “material adverse change” clauses. These clauses usually give the purchaser the right to withdraw from a commercial agreement in case of a “material adverse event” occurring between the date of signing and the date of closing.
Increased record keeping, protecting sensitive personal data and business continuity planning.
Insurance coverage queries, including liability insurance, business interruption insurance and scenarios such as event cancellation.
Planning and deploying crisis response plans.
It is predicted that we can expect disruption within the business sector for some time, and it is therefore advisable to consult with your attorney to help you respond to both the immediate and longer term business risks stemming from the rapid, global spread of COVID-19.
Previous
Is 2020 the year of POPIA?
Next
COVID-19 in South Africa: will the national lockdown affect my right to see my children?
Tags:
Commercial
Share:
Talk to us
Get in touch with us to discuss how we can help you with your challenges
Get in touch
Popular Insights
To click or to ink? Are electronically signed sale of property agreements valid in SA?
Human Rights: Upholding the right to education
South Africa’s four-day workweek trial: the good and the bad
Related Insights
Don’t forget about POPIA when using WhatsApp for business communication
Don’t forget about estate duty when doing estate planning
Victory as Muslim marriages are now recognised in South Africa
Recent Insights
Don’t forget about POPIA when using WhatsApp for business communication
Don’t forget about estate duty when doing estate planning
PODCAST: What to consider when installing a generator on your property
You can share this article in the following networks:
Contact Us
+27 51 400 4000
law@phinc.co.za
Back to top