Government measures in key jurisdictions 3rd edition final - Flipbook - Page 64
Ireland
Insolvency
•
Has the government •
made any changes
to insolvency
legislation?
There have, however, been some changes to legislation in other areas such as, for example,
landlord / tenant or employment law that will impact on insolvency practitioners, particularly
receivers and liquidators, during this emergency period.
Contractual
Issues
•
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.
What measures
have been taken
to reinforce
contracts?
Property
Have any changes
been made to
the laws around
property, rent and
enforcement?
64
Not directly.
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