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Coronavirus means danger lurks in contract fine-print
The coronavirus could have a number of negative effects on business contracts and business leaders should take precautionary steps to minimise risk
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The coronavirus could have a number of negative effects on business contracts and business leaders should take precautionary steps to minimise risk
As the business world feels the effects the coronavirus (COVID-19) pandemic and takes steps to adapt, travel companies are notifying partners that their ‘force majeure’ policies have been extended to all travellers from Mainland China and all properties within Mainland China. The result is that deposits received by hotels and guesthouses will be repaid to relevant guests regardless of the cancellation policies of these establishments. For smaller business, this can have a severe impact on cashflows.
“Businesses in South Africa should be aware of this and consider whether the outbreak may affect their commercial contracts and if so, which steps they can take to minimise their risk and exposure, both in the short-term and the long-term”, says Nadia Smith, commercial and finance law specialist at Caveat Legal.
Precautionary steps business leaders could take include:
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