Time To Review Your Terms and Conditions
23 May 2018
Did you know that from 1 July 2018 you won’t be able to terminate a contract with a client just because the client appointed a voluntary administrator?
Many businesses rely on terms in their contracts known as ipso facto clauses. Ipso what I hear you say… simply put an ipso facto clause is a term of a contract that allows you to terminate the contract upon an insolvency event (appointing an administrator or liquidator etc). As a part of the Insolvency Law Reforms, ipso facto clauses will not be effective against voluntary administrators from 1 July 2018.
So, it is about time you reviewed your terms and conditions to ensure you have sufficient protections in place.
Consider whether your terms and conditions include:
security over your client and any guarantor;
events of default or circumstances in which the contract may be terminated; and
options if you are notified that a client is entering safe harbour.
The Murfett Legal team can assist you with reviewing your current terms and conditions or putting terms and conditions in place if you don’t already have them.
Contact Kelly Parker or Mike Frampton for a no-obligation meeting, in person or by telephone.
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