Government measures in key jurisdictions 4th edition - Flipbook - Page 62
Ireland
Contractual
Issues
What measures
have been taken
to reinforce
contracts?
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.
Property
Have any changes
been made to
the laws around
property, rent and
enforcement?
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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