Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 67
Jersey
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Insolvency
Has the
government made
any changes
•
to insolvency
legislation?
minimising the potential loss to the company’s creditors (failing which the director
may be made personally liable for the company’s debts). In the UK the equivalent test
is that the director must take every step with a view to minimising the potential loss to
the company’s creditors.
The Viscount has issued a Guidance Note and the Jersey Law Society has issued a
Practice Statement. Both publications give helpful guidance to the wrongful trading
provisions contained in Jersey legislation. In particular, both publications analyse what
constitutes “reasonable steps” and the Jersey Law Society publication also provides
practical considerations on the bringing of a claim against a director.
Contractual
Issues
•
The Jersey government has not introduced any legislative measures to deal
specifically with contractual issues caused by the COVID-19 pandemic. Any
contractual concerns will be dealt with according to Jersey contract law.
What measures
have been taken
to reinforce
contracts?
•
The main contractual provision which governs the enforceability of a contract upon
the existence of an unforeseen event is the force majeure clause. In general terms, the
force majeure clause seeks to list the situations in which the parties to a contract may
suspend or terminate the contractual relationship due to the occurrence of certain
events that are outside the control of the parties.
•
Depending on the construction of the force majeure clause in individual contracts, the
COVID-19 pandemic may cause the contract to be suspended or terminated.
•
It is also possible that in certain situations the occurrence of the COVID-19
pandemic may have the effect of rendering a contract “frustrated” i.e. the changes
in circumstances caused by the coronavirus pandemic has rendered the obligations
under the contract impossible to perform.
•
Businesses should review their existing contractual relationships and seek legal
advice to ensure they are aware and fully understand their ongoing legal obligations
and identify any areas of uncertainty.
•
Mourant has set out some of the contractual issues that arise from COVID-19 in Jersey.
Property
•
Have any changes
been made to
the laws around
property, rent and
enforcement?
Temporary amendments to residential and commercial tenancy legislation have
been passed in Jersey. These make provisions to protect both tenants and landlords,
taking into account the possible effects of the COVID-19 pandemic.
•
They include the suspension of variations to tenancy agreements, by way of an
increase in rent in the period up to 1st October 2020, even where the tenancy
agreement allows for an increase at renewal.
•
Another amendment effected is that where a tenant has failed to pay rent because
of financial hardship, the breach would no longer constitute a breach whereby a
landlord may apply for a termination and eviction order.
•
The Government of Jersey has also published guidance for residential and commercial
landlords and tenants. This outlines principles that must be adhered to in agreeing
concessions and making voluntary arrangements for rent and other payments.
Government measures in key jurisdictions
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