Pre-Contract Protection and Damages Early Contract and Charterparty Review (Part 3 of Economic Crisis Series)
Pre-contract protection – securing useful representations and creating contemplated damages. Part 3 of our series on how to deal with an economic crisis, Shannen Trout discusses what international businesses can do pre-contract. Obviously many deals now will be off the table in this market. Contraction is already happening. The price of oil has collapsed. As liquidity dries up, this situation might well get worse. However, there will be those in a position to continue deal-making. At this time, it is even more important to consider carefully what kind of representations or guarantees you can obtain before entering into contracts. An air-tight bank performance guarantee is the strongest, yet hardest to obtain. In this talk, we look at other options and assess what can be done in the context of representations and special damages awareness. These strategies are to be employed during commercial negotiations and put parties in a better position if things go wrong. For further information please contact Shannen Trout or anyone from the ZFZ team to discuss this, or any of the other topics in the video series.