What is the effect of section 14 of the Corporate Insolvency and Governance Act 2020 for contracts for the supply of goods and/or services?

Table of contents

• Effect
• Scope
• Purpose
• Are these provisions designed to protect the customer at the expense of the supplier? Is any protection afforded to the supplier?
• The provisions have been introduced as a response to the pandemic, will they be with us on a temporary or permanent basis?
• What are the potential benefits and pitfalls with the new provisions to both suppliers and customers?
• What action should contracting parties take in relation to (a) existing contracts for the supply of goods and/or services and (b) the negotiation and drafting of new contracts for the supply of goods and/or services?

Article summary

Commercial Analysis: James Petts, barrister at The 36 Group, discusses the effects of section 14 of the Corporate Insolvency and Governance Act 2020 (CIGA 2020) for the supply of goods and services. The analysis touches upon the differing protection available to customers and suppliers, and provides practical guidance for contracting parties in the process of negotiating and drafting new agreements.