Countless individuals entered into contracts at some point before COVID-19 hit and now aren’t sure how they’re going to meet all of their obligations. Others are unsure how to fulfill contractual obligations that they would have had no problem fulfilling the terms of had the current situation not hit. When faced with potential lockdowns and a dramatic loss of business, small business owners often feel like they’re between a rock and a hard place with nowhere left to turn.
Breaking down the issues can help to bring some semblance of normalcy to the situation. Before you can start to put together a plan on how to handle contractual obligations in this situation, you’ll want to know what things you’re for sure obliged to do by the terms of any existing and future contracts.
What Is A Contractual Obligation?
A contractual obligation is a legal responsibility that has to be adhered to by one of the parties in a contract. When a contract gets signed, both parties normally exchange an item or service that’s of some value to the two of them. When doing so, the two parties end up with certain expectations that define whether or not the exchange was satisfactory.
At times, these expectations might not be met, which can mean a breach of contract. In a worst-case scenario, such actions could lead to litigation. Fortunately, there might be options for those who find themselves in an unfortunate place as a result of the COVID-19 pandemic or perhaps due to other types of financial hardships.
Nature Of Contractual Obligations
Some contracts include specific provisions for what might happen if a particular client isn’t able to meet their obligations. In others, these obligations could be voided by certain circumstances. Something this major could be reasons to request this sort of relief.
Keep in mind that contractual obligations work in both directions. Recently, Trembly Law firm partner, Arturo Arca, provided some commentary on what business owners and property holders needed to know when dealing with the pandemic. Those who find themselves in this position may still have the authority to enforce certain types of contracts. Likewise, they might find sufficient material to negotiate deals that can help them either avoid enforcement actions or defend against existing ones.
While contract formation is probably the furthest thing from many business owner’s minds, those who are currently instantiating contracts will want to carefully consider the terms of any new contracts that they end up negotiating. In some cases, they might want to also consider the possibility of including terms that spell out what would happen if the current situation were to repeat itself at some point in the future. A skilled team of attorneys can make sure that all of these bases are covered.
Solve Contract Obligations with A Trembly Law Attorney
When you have an obligation to pay or wish to enforce it, Trembly Law can provide you with legal counsel. We have a team that can help with contractual obligations and solve problems with them.
If you’re unsure how to deal with contractual issues caused by the current situation or even ambiguities in your legal documents, then you shouldn’t have to feel like you need to go through things alone. Get in touch with Trembly Law through our online contact page. Our professional team of business law specialists will help you review your contracts and get a grip on the situation.