Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 52
Ireland
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Contractual
Issues
What measures
have been taken
to reinforce
contracts?
Property
Have any changes
been made to
the laws around
property, rent and
enforcement?
•
There has been no recent legislative intervention in respect of the reinforcement of
contracts and the usual contractual rules apply.
•
Due to the disruption caused by the COVID-19 outbreak and the extensive
Government restrictions, many businesses, as a precautionary measure, may wish to
review their current contracts in order to determine whether they are protected or can
avail of some form of relief, in case they are unable to perform their obligations.
•
Such relief may take the form of a force majeure clause within a contract or relying on
the doctrine of frustration if the circumstances permit.
•
Force majeure clauses are interpreted strictly by the Irish courts, so businesses should
evaluate the contents of their clauses in key contracts with their legal advisor in order
to ascertain whether they cover the current COVID-19 crisis.
•
In the absence of a force majeure clause, parties may wish to consider the doctrine
of frustration as a possible form of relief, however, the threshold for frustration is
extremely high in Ireland and the scope of events which may trigger the doctrine are
extremely narrow. Seeking legal advice is recommended.
•
While a force majeure clause or the doctrine of frustration may, in certain
circumstances, be relied upon, we would recommend that businesses first discuss
potential commercial workarounds with their contracting partners before attempting
to rely on any such forms of relief.
•
For more information, please view here.
The outbreak of COVID-19 has resulted in the introduction of the Health (Preservation and
Protection and Other Emergency Measures in the Public Interest Act) 2020 Act in Ireland
which together with other emergency legislation has had a wide ranging effect on Real
Estate transactions in Ireland. We consider certain elements below.
•
In Ireland many commercial tenants are no longer able to operate, however leases
continue and the obligations of tenants remain. Many tenants have requested a
temporary adjustment to the rent payable under their leases, including rent holidays
or deferment. A commentary on the current position regarding the collaborative
approach required and the possibility of tenants extracting themselves from
commercial leases is here.
•
The main statutory interventions in the context of real estate have been in relation
to residential property which arise primarily from the enactment of the Emergency
Measures in the Public Interest (COVID-19) Act 2020. A commentary on the current
position for Residential Leases and the legislative amendments is here.
•
The construction industry has been severely affected and all construction sites, save
those associated with the provision of essential services, have been closed since
27 March 2020. The following article reviews the impact and considerations, from
the perspective of the construction sector, arising from the Health (Preservation
and Protection and Other Emergency Measures in the Public Interest Act) 2020 Act:
Construction contracts – COVID-19 impacts and considerations.
Government measures in key jurisdictions
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