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Most businesses have been struggling to stay afloat and some have considered cutting the number of their employees while others are totally closing down as they have not survived the COVID 19 lockdown period. Before deciding on totally closing down your business or company you might want to consider a business merger with a company or business that offers or renders the same goods and services as yours.
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A force majeure is generally defined as “an act of God or man that is unforeseen and unforeseeable and out of the reasonable control of one or both of the parties to a contract, and which makes it objectively impossible for one or both of the parties to perform their obligations under the contract.”
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The need to put the health of the people before the interests of imposing high tariffs and sanctions is at its peak, but are governments really going to consider this need in relation to food and medical supplies and does international trade policy cater for this?
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The disruption caused by the global COVID-19 pandemic will have dire consequences for SMME’s, especially in the franchise sector. Franchisors need to consider measures to enable their franchisees to continue trading as “smoothly” as possible once the lockdown measures have been relaxed, while franchisees need to be compliant with their franchise agreements before expecting to receive assistance.