A contract is only as good as the other party involved. If the other party becomes financially distressed, resulting in problems with performance of the contract, your company can face significant challenges, particularly if it is a sole-source or other long-term arrangement. These challenges might include:
- Getting solid information from the financially distressed contra party.
- Identifying key insolvency risks and drafting the best available solution.
- Striking the right balance to preserve relationships and the value of the contract while protecting your company’s interests.
- Addressing how contracts will be treated if one party goes bankrupt or becomes insolvent.
Taft attorneys review and revise existing agreements and customize solutions to the needs of existing contracts and customers. We have assisted rent-to-own companies and rewritten inventory finance company agreements, among other matters. In one instance, our attorneys helped a major non-profit arts organization terminate a key sponsorship agreement before that erstwhile sponsor filed bankruptcy.