Insights & Articles

There are many circumstances where businesses might give credit – even without formally doing so. Providing goods or performing services in advance of full payment is extremely common, but if a company or sole trader you are dealing with has financial problems or a poor credit history, then you may not get paid.

Part 4 of the Contracts and Commercial Law Act 2017 ("CCLA") provides that, with some few exceptions, where a signature is required by law (including to conclude a contract) you can sign that document electronically provided certain conditions are met. An electronic signature is defined in the CCLA as a method used to identify a person and to indicate that person's approval of that information.

A New Normal - The impacts of the Covid-19 virus have been felt the world over and have pushed businesses to their limits. Parties on each side of a lease have been left with the job of negotiating through untested and uncertain lease clauses in a time where the support being offered by Government has been unclear and anyone who did hold insurance is discovering that 'pandemics' and 'infectious diseases' are a common policy exemption.

Parties to construction contracts, especially those contractors (and subcontractors) who are engaged to carry out particular contract works by an agreed due date for completion, may be exposed to penalties or "liquidated damages" if unable to carry on or complete those works during the Covid-19 Alert Level 4 lockdown.

The current 'lockdown' is unprecedented. In times like these your first priority is to ensure you take care of yourselves, friends and family. However, while it is important to protect those close to you, you should also give consideration to the protection of your assets. Accordingly, it may be an opportune time to review your current estate planning to ensure everything is 'as you would like' and, if you have a trust, to make sure that it aligns with the provisions of the Trusts Act 2019 ("the Act") which was enacted this year but comes into force at the beginning of 2021.

Section 55 of the Credit Contracts and Consumer Finance Act 2003 ("CCCFA") provides that a person who is unable reasonably, because of illness, injury loss of employment, the end of a relationship, or other reasonable cause, to meet their obligations under a consumer credit contract and who reasonably expects to be able to discharge their obligations if the terms of the contract were changed as provided for under the CCCFA may apply to a creditor to agree to that change. In the present Covid-19 lockdown, we expect these provisions to be tested and both debtors and creditors need to know their rights and responsibilities in these sorts of situations.

A trust exists to hold assets for a certain purpose. For an ‘ordinary’ family trust, commonly conceptualised as a ‘mum and dad’ trust, the ‘mum and dad’ settlors ordinarily transfer their main home to trustees to hold that property for the benefit of their immediate family group. In this scenario it is common for ‘mum and dad’ to be appointed as trustees. They are additionally named as discretionary beneficiaries to ensure they may benefit from the trust assets throughout their lifetimes as well.

The Covid-19 Lockdown is a unique situation that continues to change rapidly and this raises a number of questions and concerns for people, especially in the employment space. The situation surrounding Covid-19 requires flexibility from both employers and employees.

In the wake of the Covid-19 lockdown, many employers are assessing options available to them to save their business and are contemplating cutting staff. This decision should not be taken lightly as the underlying requirements for proper termination of employment still apply.

In response to the Covid-19 outbreak the Government has announced a $12.1 billion support package to support the economy. If you are an employer, contractor, sole-trader or self-employed, you may be eligible to apply for financial support.