Gift Focus inc Attire Accessories - July/August 2020

45 BUSINESS Amanda Hamilton is Chief Executive of the National Association of Licenced Paralegals (NALP), a non- profit Membership Body and the only Paralegal body that is recognised as an awarding organisation by Ofqual (the regulator of qualifications in England). Through its Centres, accredited recognised professional paralegal qualifications are offered for a career as a paralegal professional. www.nationalparalegals.co.uk have been frustrated. Frustration is a doctrine in English Contract Law and is defined as an unforeseen event that renders the contractual obligations impossible to perform, thereby relieving the parties of their legal obligations. It excuses non-performance and automatically discharges (terminates) the contract. CONTRACTUAL CLAUSE However, some contracts may have a particular clause added in, known as a ‘ Force Majeure’ clause. This covers relief from liability if certain events take place making it impossible to fulfil your obligations under a contract. However, the circumstances where ‘ Force Majeure’ clauses will kick in have to be specifically identified and they usually cover unforeseen events – ‘acts of God’ – such as floods, war, explosions, etc. Sometimes, these clauses may also include compliance with Government rules, directives, regulations or laws or other situations, or may specifically mention other circumstances that may affect the supply of goods and services. So, if you have a clear contract with a customer and you can still, despite the current circumstances, fulfil orders, then both you and the customer are contractually obligated to do so, and the customer is obligated to receive goods and pay for them. That said, if your customer can no longer make use of the product due to the current situation, then you may decide not to enforce the contract, but rather discuss with them a way to carry it over to better times. This will be a decision each individual business owner needs to make as they consider the future of their business and business relationships. WHAT ABOUT CUSTOMERS WISHING TO CANCEL ORDERS? They first need to check if the supplier can actually deliver on the contract – if they can’t, then ‘frustration’ may apply. If they can, then you’d need to look to the ‘ Force Majeure’ clause to see if you can exit the contract on that basis. Beyond that, you may find that legally you’re obligated to complete the contract and pay the full fees. It’s always best to speak to the supplier as soon as possible to try to find an amicable compromise. In both cases, remember that almost every business is suffering right now, so finding a compromise that works for both parties, will almost certainly be the best way forward. In these very difficult times where many people rely on contracts with others to survive, it’s vital that, as a business owner, you know where you stand and what may be the appropriate action to take. @NALP_UK www.facebook.com/NationalAssocationsofLicensedParalegals/ www.linkedin.com/in/amanda-hamilton-llb-hons-840a6a16/