Government measures in key jurisdictions 3rd edition final - Flipbook - Page 85
Jersey
•
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.
Insolvency
Has the government
made any changes
to insolvency
legislation?
Government measures in key jurisdictions
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