On 26 June 2020, the Corporate Insolvency and Governance Act1 (the Act) came into force.
The Act has significant implications for supply contracts as it will prevent many suppliers ending existing contracts once a business is insolvent. The Act will make a big impact on existing supply contracts, and will also affect the drafting and negotiation of new contracts.
In our briefing note 'Corporate Insolvency and Governance Act 2000: How do the new protection of supplies of goods and services provisions work', we look at the measures in the Act dealing with the new provisions to protect supplies of goods and services and provide more information on how they work, including:
- when the provisions apply;
- what types of contracts they apply to;
- what happens to contracts to which the provisions apply;
- what relief is available to suppliers; and
- temporary exclusions.
We also provide some practical considerations in relation to new and existing supply contracts.
If you have any queries or questions in relation to this briefing note, or any other queries on how the Act might affect your business, please do get in touch with us. We are here to help you.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.