As businesses re-emerge into a very different environment they will be scrutinising their commercial contracts, and many will undoubtedly be wishing they contained more safeguards.
So, how will businesses change the way they contract with third parties in the future - now that everyone has learned to expect the unexpected?
Questions they may ask themselves include:
- What do we know about the financial position of our key suppliers and customers?
- Are we protected if a key supplier or customer becomes insolvent?
- Should we have more suppliers for our most critical supplies?
- Do we need to change our payment and delivery terms?
- Are our termination clauses fit for purpose? And crucially
- Are our dispute resolution clauses right for protecting our most important commercial relationships?
Only with careful planning will businesses be able preserve their key relationships and future-poof their financial performance.