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Unlockdown, COVID-19 & Opening of Business: Legal Risks & Considerations

With the initiation of “Unlockdown” for opening of business in India, to navigate the challenges brought   on by the rapid spread of COVID-19 (coronavirus) is now more complicated than ever as the companies are been forced to confront the way of doing business with the continuous spread of COVID-19 and to be more vigilante and preparation is requisite by the companies to address the business risks as they arise. COVID-19 has caused serious disruptions for every businesses, where some have had direct commercial impacts along with interruptions to supply chains, challenges in meeting contractual obligations, payment of commercial leases, whereas there are some universal impacts on each and every business- workplace health and safety obligations, travel restrictions, increased burden of data protection with the implement of work from home policy. As business risks, legal, regulatory and other commercial implications due to COVID-19 will continue and evolve in coming days with furth

COVID-19:How Does It Impact Your Commercial Leases?

Given the disruption caused by Covid-19 pandemic, the performances under many contracts will be delayed, interrupted or even suspended. Many of the corporate tenants in commercials lease may seek to delay and/or waive the commercial rentals for the duration especially during the 21 days lockdown. This unprecedented Covid-19 has legitimately prevented them from carrying out their business. With the outbreak of Covid-19 and government lockdown, commercial property landlords and corporate tenants should carefully review the following sections of their leases in particular to identify the impact of Covid-19 and help mitigate risk: a)      “Force Majeure” Provisions Effect on Rent Payment:  Force majeure refers to a legal doctrine under which a party may be relieved from liability for non-performance if circumstances beyond the party’s control prevent the party from fulfilling its obligations under a contract. Force majeure provisions are standard in retail & commercial le