COVID-19: Stuck in a Contract? Read this.

In these unprecedented times we may have been locked in a contract that is no longer able to be fulfilled. In every contract they should have a Force Majeure or Rights of Termination, in most cases this mean under certain circumstances that you will be able to cancel the agreement and make the contract null.

Most clauses will have this saying that there will be ‘Acts of God’ that will cancel it. So, in this case as there has been a pandemic/epidemic which would fall under the events outside of their control/Acts of God, and then would let you cancel the agreement and get a full refund.

For people who are getting tied into contracts, please always make sure that this is included, most business’ will have a template they use for all clients, but saying that there has been a few times where I have found that this hasn’t been in included, whether this was purposely or not, but it's up to you before you sign or agree that this is included and you also have every right to add your own clauses before entering.

As this contract is not only there to protect them but also to protect you, especially in unforeseeable times like these. My examples below are used from contracts with hotels but this can also apply to everything, as in furniture, electronics, holidays etc.

I was prompted to put this out there as I have heard a lot of people complaining that they had a wedding planned and now because of such events it will not be able to take place and maybe the hotel or property may be using your inexperience to benefit themselves.

For some this is common knowledge but having spoken to more than one person about this it seems it is not.

Here are some examples for future use or what it should entail:

FORCE MAJEURE

The performance of this Agreement by either party is subject to acts of God, terrorism, war, government regulations, damage or destruction of the hotel, outbreaks of disease or epidemics in the country where the property is located, disaster, curtailment of transportation or transportation facilities, fire, strikes, civil disorder or other similar cause or threat thereof beyond the reasonable control of the parties making it illegal or impossible to perform to the terms and conditions contained in this agreement. This agreement may without liability on the parties be terminated or revised (with written agreement of both parties) for any of the above reasons by written notice no less than 10 days from one party to the other.

RIGHTS OF TERMINATION FOR CAUSE

This Agreement may be terminated by either party without liability upon written notice under the following circumstances:

(i) if a party's performance under this Agreement is subject to acts of God, war, government regulation, terrorism, disaster, strikes, civil disorder, curtailment of transportation facilities, or any other emergency of a comparable nature beyond the party's control that in each case make it impossible to perform its obligations under this Agreement. In such event, the terminating party shall give written notice of termination to the other party within five (5) days of such occurrence; or

In the event of termination by either party under this section, we shall refund all deposits and/or prepayments made by the Group within thirty (30) days of receipt of the notice of termination.

Change it accordingly to how you see fit. Its entirely up to you within how many days monies should be repaid, of course agreed by both parties.