We’re seeing more world events affecting a large percentage of contracts within organizations than ever! This article from Onna discusses a couple of recent world events affecting contracts and how to prepare your organization for handling contracts at scale!
Their article Managing contracts at scale — Are you prepared? discusses two recent world events affecting contracts of the past two years:
- Force Majeure Clauses review during the COVID-19 Pandemic: When the start of the global pandemic in 2020 forced many businesses to shut their doors, organizations had to conduct a large-scale review of their contracts to determine how the Force Majeure clause in their contracts addressed this unforeseen event, putting Force Majeure clauses to the test like never before.
- Replacement of LIBOR with SOFR: In 2021, the Financial Conduct Authority —the United Kingdom-based regulator of the London Interbank Offered Rate (LIBOR) — announced the publication of 1-week and 2-month U.S. dollar LIBOR will cease after December 31, 2021, directly affecting the U.S. dollar LIBOR settings. The LIBOR rate was replaced by the Secured Overnight Financing Rate (SOFR), which required a large-scale effort to update contracts to use SOFR instead of LIBOR for calculating interest on contracts.
So, what are some of the types of contracts that may be affected by events like these? More importantly, how can you prepare your organization for handling contracts at scale? Check out their article here to find out! No need to sign anything! 😉
So, what do you think? Has your organization been impacted by any world events affecting contracts recently? Please share any comments you might have or if you’d like to know more about a particular topic.
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