You know who your friends are when things are tough – for everyone else have a contract!

It is times like now, with the Covid-19 outbreak creating unforeseen challenges and threatening the very survival of many businesses, that we really discover who we are doing business with.

Whilst every business is needing to take measures to protect their interests there have been some responses covered in the press, that you feel do not show a sense of sharing the pain, but rather passing as swiftly as possible on to other companies. Such as the clothing companies cancelling orders for clothes already made and insurers being sued by clients for letting them down, in their eyes at just the time they needed to step up to the plate most.

Unexpected crisis is always a time when contracts, and the legal commitments held within them, come under closer scrutiny and for firms who have protected themselves properly it pays dividends. Anything other than watertight however, and businesses more often than not are left exposed often resulting in further pain, arguments and legal settlements that can drag on and leave relationships in tatters.

One of the current debates swirling around business out of the economic consequences of the lockdown is the need for greater resilience within businesses of the future. ‘Just in time’ efficiency, with absolutely no slack in the system, being replaced with a ‘just in case’ planning culture, to be able to cope with any bumps or bigger potholes, like we have now in road. An integral part of this should be clarity and understanding of the legal conditions being signed-up to with any contracts.

Often seen as a necessary evil, or even overlooked altogether to save a few pounds, contracts relating to all aspects of business, be it suppliers, staff, premises or financial and ownership arrangements, should be regarded in a new light and their true value  for money reassessed. The relative cost compared to having your revenue and business as watertight as possible is very small compared to the piece-of-mind and greater certainty it can provide.

It often takes a significant event to see things differently and know the value of investing in greater resilience, legal or otherwise, in businesses.

For more information on the range and type of contracts that would benefit you the most visit www.powellslaw.com

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