SRA COVID-19 Updates - Re-Align Framework to Renegotiate Contracts For Businesses Significantly Impacted by COVID-19
The Ministry of Law will be introducing a new Re-Align Framework targeted for small and micro enterprises who have been significantly impacted by COVID-19, and need to review their business models and contractual obligations.
The framework provides parties with a basis to renegotiate certain types of contracts to come to a mutual agreement. If unable to agree, the contract may be terminated. Businesses will remain liable for outstanding debts and obligations, but will not need to pay early termination penalties.
The Re-Align Framework hopes to provide a quick and fair way for businesses to renegotiate their contracts and realign with current economic conditions and business objectives.
The Ministry of Law will announce implementation details in due course.
The infographic below from the Ministry of Law give businesses an overview of the Re-Align Framework.
You may wish to read the press release in full and refer to the FAQs for more details.
Contact Person: SRA