The COVID-19 pandemic is disrupting the performance of contracts leaving contracting parties asking themselves whether they can and should seek to enforce the obligations in the contracts, which leads to consideration of whether to terminate these contracts.
The government has published non-statutory guidance on responsible contractual behaviour in the context of the COVID-19 pandemic and the unique challenges which businesses are facing. You can access it here.
While contracting parties are strongly encouraged to follow this guidance it does not preclude parties exercising their right to terminate (albeit parties are encouraged to be fair and reasonable in this regard).
To help you consider your options, we highlight below the key points to bear in mind when considering whether or not to terminate a contract.