Contractual Relations And Covid-19: Weathering Economic Contraction

The spread of the novel coronavirus, COVID-19, has triggered the exercise of numerous emergency powers by the Federal, Provincial, and Municipal governments. Changes to legislation and regulations to address rapidly evolving health and economic threats have been announced and directions issued, with more continuing to follow.

At the same time, the legal landscape for commercial enterprise is shifting. As the economic realities of social distancing directives begin to manifest, straining companies' cash flow and balance sheets, these unprecedented circumstances are raising legal issues that infrequently arise for many businesses.

In this article, we consider the immediate contractual issues companies are likely to encounter as everyone adjusts to the rapidly changing business realities of operating during the COVID-19 pandemic.