We have prepared a standard distillation agreement and an agreement on tolls that can serve as the basis for solving these problems. This would be a model for companies facing performance problems in contracts, including payments or recoveries, that could soon be overwhelming for the parties and the justice system. It contains the fundamentals that such an agreement should contain and therefore offers companies a balanced opportunity to legally freeze their trade relations while the economy stabilizes. This model of agreement is obviously not designed as legal advice or substitute for legal advice. All users are encouraged to keep the advice if possible. In essence, the model agreement refers to „status quo issues“ and sets a „status quo period“ during which the party agrees not to seek certain remedies and the party who, because of excellence, does not agree with the fact that it will not proceed with a series of non-ordinary court acts that may ultimately harm the other party. It understands that certain obligations, for example. B for partial payments or the provision of certain goods or services, may persist during the status quo period. It contains corrective measures in the event of non-violation of one of the parties. Referring to practice, the model agreement explicitly envisages the possibility of traditional or electronic execution and provides a mechanism for determining how one party should be communicated to the other party – particularly useful at a time when so many businesses are closed or managed from remote sites and not from their usual locations. There is a risk of entering into negotiations for a status quo and such an agreement must be carefully developed and documented in order to be implemented. While the AbA agreement is not intended to replace legal advice and should be tailored to the facts and circumstances of any discrete contractual relationship, a status quo/toll agreement provides a practical business tool to help parties develop solutions before violations occur, even given current uncertainties, and provides greater security as soon as the effects of the pandemic have been eliminated.
The coronavirus pandemic has undoubtedly led many businesses – especially small and medium-sized enterprises and businesses that are most affected – to take unprecedented steps to survive only. For many companies, a national blockade has allowed them to review all their contracts to determine the impact of the pandemic on their trade agreements and what happens if they are unable to work as agreed. As we write, the COVID 19 pandemic has a profoundly unpredictable and profoundly unpredictable influence on the economy.