In part one of this
article, I discussed five considerations for negotiating and
drafting contracts during this period of continuing commercial
uncertainty resulting from the COVID-19 pandemic.
Below are five additional considerations for negotiating,
drafting and executing contracts during these uncertain times:
1.Term and Renewal.
Present global uncertainty will likely make it difficult for
some parties to settle contracts, let alone agree on contractual
arrangements that will be in effect for longer periods of time.
Therefore, at this time shorter contract terms may be preferred
over longer terms. Similarly, auto-renewal clauses may not be
appropriate if parties will need the opportunity to consider the
state of their industry and the overall economy before committing
to a subsequent term. On the other hand, with shorter term lengths
it may be preferable to include renewal rights providing that only
some contractual terms will be renegotiated (for example,
