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Importance Of Technology For Lawyers in the Coming Times

  • Read: 10 Minutes
  • Category: Legal Technology
Importance Of Technology For Lawyers in the Coming Times

Technology has become an integral part of our society. It plays a vital role in human lives now transforming every section and strata of society. From children to the oldest people, all are using technology and it has made things simple and easier for people. From education to the corporate world, technology has proved useful and supportive providing numerous benefits than drawbacks.

Technology is not limited to Business sectors only, but it has paved its way into the legal industry as well. Corporate law firms have adapted and embraced the technology as it has made their work process much easier and simpler. Technology is proving best friend to lawyers in various areas of work and many litigation lawyers have already started embracing technology in their daily routine.

 

 

Why Embracing Technology is Crucial Now More than Before?

COVID-19 has proved the need and vitality of certain changes in the legal industry. Whether law firms or litigation practitioners, usage of technology is growing daily. From e-filing to hearing via video conferencing, Courts have gone virtual although certain difficulties are being faced by the judges and the advocates. However, coping with the change and need has left not much space.

 

Time is unpredictable and Coronavirus outbreak has proved and forced people and every small and big business to a standstill for an unknown time period. In such a situation, it turned out to be extremely essential to embrace technology as it will make the process of work much smoother and easier. It will also save the cost of time and avoid other unnecessary stuff.

 

The present situation has taught people to find an alternative and long-lasting solutions over the available resources. Amid this crisis technology adoption has become the key to survival and success.

 

 

Software Available for Lawyers and Law Firms

 

Time and Billing Software

This software tracks time spent on working on a project accurately and creates invoices accordingly. Time and Billing software is helpful in creating accurate time deadlines and crucial for the firms or companies in the professional field. Some of the law firms are benefiting from this software already now.

 

Customer Relationship Management

Customer Relationship Management or CRM software is essential for business companies and law firms are no exception in my opinion. CRM is very critical to businesses as it helps to consolidate company data in one space. Law firms can access customer data, send bulk emails to their clients and newsletters, invitations, etc.

 

Document Management Solution

This software is used for the collection of secure data. It helps to organize, store, access, and share documents including confidential files. Through this application, Documents can be stored on the cloud and can be accessed from smartphones or tablets.

 

Finance and Accounting Software

This software can make work much easier and simpler by providing financial tools and features that can help lawyers and law firms in tracking and managing their book of accounts, profit, and loss, monitoring all financial performance, etc.

 

Proofread and Review

Proofread and review helps read and review large files that can take hours to read and review by a man. This is less time consuming and more reliable in terms of errors.

 

Knowledge Management Software

Knowledge management software can help lawyers and law firms organizing, publishing, and sharing important documents including opinions, transaction files, judgments, etc. This software also helps to lessen the cost while maintaining the quality of work.

 

Case Management

It helps to manage your cases and it works as a reminder keeping the details of all your cases. This is proved to be less hectic for lawyers and law firms.

 

In addition to the above list of software, other digital tools which are helpful to lawyers for a better experience for their clients are Live Chat, Artificial Intelligence enabled document scanners for scanning large and heavy documents and other data; this is already being used by most of the law firms and lawyers in their offices. This software is commonly used in countries like the USA and UK.

 

 

Benefits of Technology

  1. Technology takes less time in comparison to humans
  2. Fewer chances of error as technology will increase accuracy and transparency.
  3. More reliability unless the software gets corrupt and hacked.
  4. Large data files storage.
  5. Easy Access, Time management, and fast process
  6. Reduces large stack of papers into a device that is also environment friendly.

 

 

Drawbacks of Technology

Every coin has two facets so it is with technology usage. Drawbacks are as follows: -

  1. Cyber-attack risk
  2. Lack of fully trained users can cause the risk of data loss.
  3. A mistakenly given command can corrupt the device.

Cyber-attacks are emerging rapidly since the lockdown started as various big organizations and companies have allowed their employees to work from home and home internet networks and systems are not fully cyber secure. Security can be breached easily, and the organization’s confidential data can be stolen. Therefore, the risk is high using the unsecured system.

 

 

Limitation of Technology for Lawyers in the Present Scenario

 

Necessity is the mother of all invention. Definitely, lawyers are trying to learn and adapt to present scenario, however, subordinate courts lack basic IT facilities including lawyers practicing there and Bar Council of India in its letter addressed to Chief Justice of India has shown emphatic concerned towards advocates and judges as well mentioning “I can emphatically say that 90% of Advocates and hon’ble judges though out the length and breadth of the county are themselves unaware about the technology and about its nuances,..” (Source: LiveLaw).

 

19 lakhs advocates practice in India and the majority of lawyers lack the basic IT infrastructure so it is not hard predicting that 90% of advocates and judges lack technical knowledge and find it hard to learn and adapt technology.

 

 

Future Scenario

The present situation is enough to teach the lawyers and law firms that their staff and they shall be well versed with technology and changing aspects of society. Only survival is not enough but co-existence with the unseen situations has become crucial.

 

 

What Can Be Done to be Future-Ready?

To avoid such chaos in the future, lawyers can facilitate themselves with technology advancement and provide proper training to their staff. So that they don't find themselves in the pool of unknown. Some suggestions are as below that lawyers can avoid the present crisis in the future by: -

  1. Update and upgrade with technology.
  2. Bringing technology to practice in their daily routine of work.
  3. Research and exploring Artificial Intelligence including other aspects of technology.
  4. Encouraging more virtual meetings and usage in their work style.
  5. Not restraining themselves to a particular software or application.

 

 

Conclusion

Technology can help lawyers and law firms in various positive ways. It improves communication and efficiency. It also helps to keep employees engaged, increases the quality of their work, provides an unlimited supply of knowledge. Lawyers and law firms can get maximum benefit by training their staff and themselves. Technology has revolutionized the legal industry with its advancement. It can help law firms and law offices to achieve higher milestones driving their work capacity and sorting their small work issues for instance case updates, client management, etc. However, considering the available IT infrastructure of our country, technology adoption amongst lawyers, law firms and law offices will take some time. So, for progress, growth, and success in the future, every lawyer should prepare themselves and learn to adopt technology and become future-ready.

“Technology can become the wings that will allow the educational world to fly farther and faster than ever before-if we will allow it.” – Jenny Arledges

 

Authored By: Asha Singh, Advocate

Practicing in High Court of Punjab and Haryana, Chandigarh

 

 

Disclaimer: The content of this article is solely the author’s personal analysis and interpretation. In case you wish to act upon on the basis of the content of this article, please seek legal advice. The author shall not be responsible for any loss you may incur as a result of your actions relying upon this content. The content herein is the copyrighted material of the author and is informational and shall not be used for commercial purposes other than for personal reading.

 

Appearing in court hearing through video conferencing? 8 important tips for you

  • Read: 03 Minutes
  • Category: Legal Technology
Appearing in court hearing through video conferencing?  8 important tips for you

During the ongoing Covid-19 pandemic, videoconferencing is the new normal & Indian courts are adopting videoconferencing as a critical measure to continue the judiciary to work & to ensure the implementation of social distancing as a mandatory safety measure for all.

 

Now, most of the courts don’t have in-person appearances and have started using videoconferencing tools to facilitate and streamline the administration of justice.

 

We have seen a sudden rise in court proceedings via videoconference but lawyers are still to catch up with the new technology and their new normal of pleading in the court. Lawyers are trying to navigate the not so easy screen of video conference software & the attached new etiquette of it. Unfortunately in a country like India where technology penetration among Lawyers is low and not all practicing lawyers have become accustomed yet with the digital techniques of practice. Recently an honourable Judge made an observation and requested that lawyers appearing before him through videoconference should at least wear shirts and dress in a manner that is appropriate to the courtroom.

 

So the key question is WHAT IS THE RIGHT ETIQUETTE FOR COURT APPEARANCES via VIDEOCONFERENCE? What steps can – and should – you as a Lawyer take to ensure that your videoconferences are professional and suitable for the hearing?

 

Court appearances using videoconference are very new methods and there are no well-established rules or accepted practices available as of now. Having said that, I feel common sense along with practical knowledge can be used to make sure that you put your best foot forward when pleading for your clients via videoconference. I have collated a few practical tips for you so that you can follow these tips and stay ahead in the practice of the online representation in courts.

 

 

1. Your Professional Attire

It’s very practical & common sense that you should dress appropriately for the online hearing, at least on the top half of your body, since that’s all that will be visible on the screen. Put on a white shirt and/or a black coat, this is applicable to both the genders. This can make a huge difference. Comb your hair and make yourself presentable. We all are homebound during lockdown, but if you’re appearing in an online video court proceeding, dressing is the key. By doing that, your looks will not distract from the point you’re trying to make. And if your client is also asked to appear in the hearing, make sure to remind your client about the importance of dressing correctly.

 

 

2. Mention your ROLE in your login name

This is very important because Judge is also looking at your name to talk to you hence if your ROLE is also mentioned there, it will help him/her identify you correctly. For example Mahesh Moorthy, Lawyer for the defendant. If your client is also attending via videoconferencing, the client should also use the same nomenclature i.e. Ajay Mishra, Defendant.  By doing this, it becomes immediately clear to everyone attending the hearing who you are and what is your role, thus providing more clarity and ensuring that the proceeding runs smoothly.

 

 

3. Login Early

Like in the real court, we all are present before the Hon’ble judge’s entry in the courtroom, similarly, it is a good idea for both you and your client to log in for the hearing a few minutes early. By doing that if you find any technical issues while logging in, you will have time to correct it.

 

 

4. Watch your body language

As a lawyer, you know that court craft is all about your body language and it is equally important for your clients too even during a videoconference. For new users (in Indian scenario almost all are new) it may be difficult to get used to it i.e. looking directly at the camera when you speak. Also, during the videoconference, don’t do any kind of multitasking. You should keep your hands away from your face and keep your face as neutral as possible. Your facial expressions are more easily identifiable during videoconferences and you don’t want any expression to be misinterpreted by the judge! Make sure that you share these tips with your clients who also might be appearing in the hearings.

 

 

5. Your Background in the Video

Yes! that is the most ignored aspect in a Video Conference and that is the most disturbance causing reason too. Always check your background before logging into the videoconferencing session. If you are sitting in your room then be aware of what’s behind you and how it will appear to the Judges during the hearing. Make sure there are no distractions like reflections of lights or the sunlight coming directly on the background behind you. If there is no option and you are in a room which is not professional; like a bedroom or kitchen, then you can use a background image in the videoconferencing software usually now available in all of them and if you are using a background make sure to choose a professional-looking background for example a bookshelf etc. 

 

 

6.  Do the technical checks of your camera & microphone before the call

Technically check your computer system before you go live on videoconferencing. It is a good idea to conduct a practice session before you appear for your live hearing and more importantly advice your client also to check his computer system thoroughly. If you have never used the videoconferencing software preferred by the court, make sure it’s compatible with your laptop/mobile or desktop and download the software before the scheduled conference. Advice your client to do the same. Better safe than regret!

 

 

7. Use a good quality headset

As a technology company we advise avoiding usage of your computer’s audio. You should use a good quality headset and if it’s Bluetooth make sure that you have paired it with your device much in advance to the video hearing. We also suggest keeping a wire ready in case Bluetooth fails for any reason like not charged enough, pairing issues etc. A headset, allows you to maintain client confidentiality and have better sound quality all around. It is a very important etiquette to mute yourself whenever you’re not speaking i.e. keep your microphone off to avoid any unwanted sound/noise which can create a distraction. This advice applies equally to your clients attending the videoconference hearing.

 

 

8. Discuss with your client ahead of time

If your client will be participating in the virtual court hearing, make sure that your client understands how the videoconference hearing works and that all participants can hear what’s being said if you’re not muted. Explain the importance of confidentiality and how it is critical to avoid sharing confidential information or to have confidential discussions during the appearance.

 

 

Those are my top videoconferencing etiquette tips for Lawyers. Did I miss anything? If so, let me know in the comments.

To know more about how technology can help manage and grow your practice visit us at https://www.legalkart.com/lawyers-practice-management

 

Impact of COVID-19 On Project Financing

  • Read: 05 Minutes
  • Category: Company
Impact of COVID-19 On Project Financing

The impact of COVID-19 (coronavirus) cannot be miscalculated in project finance, as this virus is considered as a global pandemic and has resulted in the closedown of construction work and its related operations. The consequences can be seen as slow production and manufacturing of necessary equipment in projects are delayed due to the outbreak of COVID-19 which means the supply chain will be disrupted worldwide. Moreover, in project financing, Project Company is usually considered as a special purpose vehicle (SPV), and pursuant to present critical situation lenders are having no recourse to sponsors where the project is not performing as per the expected plan. But considering the different scenarios as the government now is hacking interest rates and making banking rules more convenient at this time of financial crunch.


Due to lower interest rates, demand for financing the new upcoming projects will increase along with debt financing and this effect will operate for the long term from the present. However, this article provides a snapshot of FORCE MAJEURE clause activation in project financing, how to get through the force majeure risk, and what all are the necessary consideration for the purpose of force majeure. Along with the force majeure aspect this article will also focus upon other immediate impacts on project financing due to COVID-19.

 


ACTIVATION OF FORCE-MAJEURE IN PROJECT FINANCING

Force majeure clause comes into play when one party is unable to perform his contractual obligation which he needs to perform and due to natural circumstances i.e. unforeseeable circumstance’s which includes acts of war and natural disaster, he was hindered or delayed in performing the same. Force majeure is governed by Section 32 and Section 56 of Indian Contract Act, 1872 and is also considered as exception to what amounts to breach of contract. This concept is explained in detail in one of the celebrated Supreme Court Judgement titled Energy Watch Dog vs. CERC. Usually this concept of force majeure is prevalent in project financing and construction cases. In an epidemic or pandemic scenario, like of COVID-19 this clause gets into play by contractor in construction project because he is the first one to encounter the consequences because of disrupted supply chain. When the force majeure clause is invoked due to the COVID-19 outbreak there is no surety that the contractor will succeed because it will depend on contractual interpretation whether this outbreak will be considered as “epidemic” or not.

 


After invoking force majeure number of key considerations arose which are as follows:

  1. Project Company has to ascertain that whether force majeure will succeed as per the interpretation of construction contract and this has to be done with the limited time frame.
  2. Assessing the evidences and circumstances which will prove that due to COVID-19, project company/contractor is unable to perform their obligation. Also, on the basis of a contractual agreement between the parties, it demands the contractor to prove that he is being prevented by the force majeure event to carry on his contractual obligation. Furthermore, the contractor also needs to produce the evidence to prove his onus pertaining to the contract

 

Now in order to analyze the force majeure in the contract the contractor or say the project company has to establish connectedness between the qualifying force majeure event and the impact to its performance of contractual obligations, and in most of the cases this will be based upon factual circumstances which will differ from case to case basis. Due to government measures that are related to business lockdown, mandatory quarantine measures, which will directly affect the working of the project and contractual obligations can be considered as evidence for the activation of force majeure clause. Concerned expert feedback would be required for the collection and preparation of evidence for notices of force majeure.

 

This also requires the affected to take steps in order to mitigate the force majeure events and it is considered as an obligation upon the affected party to do so. Also, it was required to draft or take the alternative options in consideration to perform the obligations pertaining to the contract and it would be advantageous to take remedying measures to address the impact due to unforeseeable events like COVID-19. However, in order to ensure that the claim is not time-barred, time is an essential ingredient for the notice requirement for the purpose of force majeure claim.

 


HOW TO TACKLE FORCE MAJEURE RISK?

The loopholes in the force majeure clause should be taken into consideration and such gaps should be addressed when the project documents were subject to bankability due diligence. Bankable project documents will typically contain similar force majeure provisions and the contractor's notice of force majeure will form part of the project company's notice in the project documents. Also, if there is any discrepancy or say loophole is identified, then the force majeure will be tested through the COVID-19 outbreak.


Further, others get through consideration include the timeline for submission for force majeure clause. In practice, the contractor and the project company may be engaged in negotiations or discussions on the impact of force majeure and will, therefore, need to consider the timelines that are running in parallel. Usually, Project documents with future cash flows contain time which provides a sufficient amount of time to project companies to provide its notice of force majeure under the upstream project documents. Another important contemplation is the different governing laws for project documents. Offshore construction contracts will be governed by English law, but on the other hand, power purchase agreements should be governed by the local law. Therefore, if the risks associated with different governing laws are not mitigated when the project documents were being developed, contractual interpretation of force majeure provisions can be difficult.


Moreover, the party claiming force majeure has to prove that he has taken all reasonable circumstances in order to avoid or mitigate the risk and its effect. Thus, this will depend upon case to case basis and in project company case contractor has to prove the same. In project financing consideration under financial document needs to be taken care of, project lenders are widely analyzing the COVID-19 outbreak as they begin receiving notices related to force majeure and due to which they cannot wash their hands off this outbreak. This outbreak requires taking steps in financial documents that are in consonance to the terms of the project document. Furthermore, after receiving the notice of force majeure the project lender has to consider carefully the impact on the project and positions under the financial document. Also, prior consent is also required before agreeing to any relief obtained through force majeure and certain time constraints need to be undertaken by the project company in this case.

 


EVENTS WITH ITS NEGATIVE IMPACT

After considering force majeure scenario there are other events too which will be triggered due to COVID-19 outbreak in project financing and major of these defaults might extend to necessary parties involved in the successful completion of the project that is construction contractor, operator, and main manufactures of necessary equipment’s. Default events are as follows:

 

  1. Emerging Economies: COVID-19 outbreak affected economy drastically which would be clearly seen through interruptions created in supply chains, fall in exchange rates, limited support, or say financial support of government for projects as impacted by COVID-19 outbreak. Whilst it also includes travel restrictions, the lockdown of major working sites and financial covenants involved in the projects are also affected. Thus, this pandemic affected economy but it insurances should be taken into consideration to take up protection form this drastic effect and all these measures should be taken into consideration by the project company, lenders, and all sponsors, who may be coming under pressure due to this outbreak.
  2. On-going Projects: one should expect, that this outbreak already affected on-going construction projects due to hampered supply chain and labour availability worldwide. In India, labourers are going back home because of this outbreak and it is expected that this impact will be amplified in the future. Further, as the government has taken initiatives in lowering interest rates and baking measures which will benefit the upcoming projects in the future but presently debt financing and tax equity financing is going through a negative impact. Lack of funds would be witnessed pertaining to the on-going projects which will attract defaulting lending provision in loan documentation.
  3. Material adverse effect clauses: ongoing projects which contain Material adverse effect clause, will get triggered because of circumstances that arose due to COVID-19. Further, this clause will be activated when specifically the situation or say circumstances will affect the project. Thus, there should be material adverse effect and circumstances from case to case basis has to be administered and considered. In my opinion, this clause will get in activation mode because each and every project is hampered due to this virus outbreak. Also, the borrower should inform the lender about these circumstances from time to time.
  4. Financial ratios: The effect of COVID-19 as of now cannot be said to be accurate because it is still in action and according to the Health Ministry and government inputs it may extend for some more time. Due to which debt financing or tax equity financing will hamper but the project financing sector will surely bounce back with a boom in itself from this recession as it was earlier seen in the 1987 recession. The present slashing interest rates and tax incentive proposal will allow the project finance sector to recover.

 

Considering the impact, Project Company has to take the following measures:

 

  1.  A project-related review should be done by the project companies so that it can analyze the impact which the project has to go through due to the COVID-19 outbreak. As seen in normal circumstances the risk associated with the project will be the supply of necessary equipment, labour availability risk, financial covenant risk, and other lending and funding scenario. Whilst with the effect of COVID-19 these risks will get one level up and due to the slowing of economy financial crunch will also arise in project financing.
  2. Major contracts involved in project financing like an employment contract, shareholder agreement, the loan agreement should be critically analyzed in respect of termination, force majeure, and law jurisdiction and dispute resolution mechanism. Also, repayment covenants, information covenants, events of defaults should be critically reviewed.
  3. A detailed review of Supply chains should be done so that an alternate option can be finalized in advance by the project company. This step should be in respect to mitigating the losses and reasonable steps that can foresee.
  4. Expected outcome after inserting force majeure and list of events in which it can be invoked and other ways as stated earlier about how to get out of the force majeure and compliances which are necessary as per Indian Contract Act, 1872.
  5. Consider developments or impacts of steps taken up by the government pertaining to the COVID-19 outbreak with respect to project financing along with tax implication involved. Also, the Project Company should amend all it’s an important document well in advance so that it can save time and cost for the same.

 

 

CONCLUSION


COVID-19 outbreak is spreading at an alarming rate due to which economy is diversely affected and the project finance sector is also facing uncertainties through the hampered supply chain, labour availabilities, financial crunch, and unforeseen circumstances. This outbreak has also affected debt financing and tax equity involved in project financing. Further, continuous monitoring of government policies are required for project financing. So, at last, after considering the crucial aspects of force majeure, the negative impact of several defaults due to the COVID-19 outbreak is one of the worst nightmares in today’s economic sense for project financing.

 

Authored By: Vaibhav Chauhan

JEMTEC School of Law

 

Disclaimer: The content of this article is solely the author’s personal analysis and interpretation. In case you wish to act upon on the basis of the content of this article, please seek legal advice. The author shall not be responsible for any loss you may incur as a result of your actions relying upon this content. The content herein is the copyrighted material of the author and is informational and shall not be used for commercial purposes other than for personal reading.

Business Lookouts During COVID-19

  • Read: 04 Minutes
  • Category: Company
Business Lookouts During COVID-19

Businesses are experiencing unprecedented challenges and market disruption due to the Covid-19 pandemic and consequential economic meltdown seems inevitable. Economists predict that economy is now dealing with a situation far worse than the global recession of 2008. We are not prepared to deal with this situation since no business has anticipated or predicted menace to this extent, where globally national borders are locked down halting global market and business operations. 

 

Importantly, we are dealing with a war waged by the unknown, and nations are fighting to safeguard and protect their people and economy. In this context, businesses/ entrepreneur has to operate sustainably, and it is important to set up and administer certain proactive measures to mitigate financial and business losses. These special circumstances require special measures to sustain and thrive, and this article covers some measures that companies may imbibe to thrive over the crisis and to sustain. 

Pragmatic ideation and proactive resolution will mitigate the impact of impending problems”

 

 

WORK FROM HOME

Work From Home is not an exception but has become a Rule”

Legally, the success of a business and its sustenance depends on how well it protects its confidential information and trade secrets. Especially, in times like now, it has become imperative not only to have sustainable business modus operandi to thrive and succeed during bad market conditions but also to protect what has been already built through years of hard work. This sounds simple yet very difficult to implement and execute in the frontline. 

 

Employees are key to every organization. Their performance and conduct in operating the business decide the company's future. Good employees build a successful business and the bad ones ruin the organization. A simple claim or lawsuit will change the future of the company or drag the company into darkness (third party infringement and damages suits), so the company should explicitly set out the framework within which the employees have to function within the company. 

 

With a large number of employees working remotely at the comfort of their houses, the management is now grappling with the management of infrastructure to facilitate employees with work from home access and to keep the business running. While companies are dealing with infrastructure difficulties, protection of confidential information and trade secrets should be set on high priority in order to avoid future uncertainties and to govern the way the organization continues to operate within an uncontrolled environment of homes of the employees.

 

Measures: Implementing effective policies and conduct awareness training programs so as to how to operate and function while working at the comfort of home. Data Protection Policy, Information Technology and Security Policy and Work from Home Policy are few policies that companies should implement and effectuate measures for protection of data and confidential information.

 

 

STRUCTURE BUSINESS CONTRACTS

Businesses don’t operate in silos but are reliant upon clients, service providers, and customers (the list may vary business to business). It is important to evaluate and strategically secure and retain existing business connections. Practically, retaining old clients is a cost-effective measure, since securing new clients is a costly affair during this market meltdown. The business relationship with the client is regulated by a document called “Agreement” and this provides how to govern and operate during the subsistence of the agreement.

 

An agreement may be implied or express contract. Where the terms of the agreement are explicit, the business should evaluate the risks and be prepared for any foreseeable risks that may arise in the current market circumstances and protect itself from the unforeseen risks (Force Majeure Clause). For implied and unwritten business arrangement, the company will be operating in an uncontrolled and ungoverned territory and may cost the company irreparably, if things don’t operate the way they are supposed to, and legal binding of the implied agreement depends on external factors and burden of proving the transaction and losses are high. So, the management should focus on dealing with the governing business through the Agreements.

 

Agreement decides whether you have a falling business or scope to rise above the troubled water.”

 

It is imperative to work along with the legal team to overcome the uncertainties and to operate within a controlled business environment. In the interest of economies of scale of business, as a rule, litigation should be the last resort. When agreement provides for business certainty why take long shots with regard to company future.

 

As such, in case a client (or a set of clients) is important for the survival of a business, then the business should take proactive measures to re-negotiate, re-design, or structure the transaction to make it sustainable to both the business and the clients. If you are expensive to your client, your dealings with them are bound to fall to the ground. Importantly, be the first to make a proposal for restructuring a transaction before your clients make a decision against you and it’s too late.

 

Change is constant, adaption is a rule and knowing when to adapt will decide the success” 

 

Conventionally, business teams are oriented to gain business, finance to control costs and project profits, so they pay no heed to transactional risks. Inevitably, in order to succeed, the leaders have to make decisions that involve exposure to risk. However, it is important to take calculative and informed decisions with regard to such a risk exposure and the same has to be documented through an agreement to avoid uncertainties and ambiguity. Drawing up an agreement is not just a good-to-have measure, but it is a tool to resolve conflicts in case of disputes. 

 

To be triumphant, all teams should collaborate and structure a workable business transaction for the clients. Overpromising-Underperformance and low promises and overperformance both strategies kill the business, but a sustainable, performance and an achievable business agreement works well for all and leads business to a successful path. In this, the legal contribution would be to enlighten the business with unbiased views of the nature of risk and consequences that may arise therefrom.

 

Notably, business conglomerates are successful in a way they are, since they operate and function by making informed decision knowing their exposure and risks, and on the contrary, start-ups can’t afford legal costs and hence fall prey in the hands of business eagles who specialize in acquiring businesses at low cost (or no cost). As a result, start-ups rise and fall over-night. 

 

Measures: Evaluate your business agreement and understand the cost-value proposition as the deal/ transaction stands. In essence, restructuring your business agreement to current market will help companies to retain clients. This task also helps companies to evaluate high-cost clientele and to allocate funds to sustain the business or make the decision to let go of a client for the larger good.

 

 

SUMMARY

Pragmatic and proactive measures make to business sustainable and keep it afloat.”

This article outlines legal measures which the business managers have to evaluate and reconsider under the Covid-19 crisis. It aims to highlight the common areas of lacuna in business operations. Pragmatic and proactive measures make the business sustainable and keep it afloat. Introspection into business processes, models, operations, and business flow, and the results of such analysis helps to strategize and acclimatize to the current business environment. Change is inevitable so the factors are key to thrust and succeed. Having enforceable and sustainable contracts is vital to govern the way the business operates and to understand obligations and liabilities. This will help to plan, strategize, and execute business in an informed way during the time of change in the business environment, and to stay out of troubled waters. These measures may mitigate the disaster and help to survive and succeed in the long run.

 

Authored by: RAMYA KUNAPAREDDY

Corporate and Litigation Lawyer, Hyderabad

 

 

Disclaimer: The content of this article is solely the author’s personal analysis and interpretation. In case you wish to act upon on the basis of the content of this article, please seek legal advice. The author shall not be responsible for any loss you may incur as a result of your actions relying upon this content. The content herein is the copyrighted material of the author and is informational and shall not be used for commercial purposes other than for personal reading.

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