Accordingly, both Australia and the new British rules allow suppliers to apply to court for permission to use an ipso facto clause. This is not a realistic option for cash-strapped small suppliers. One new British rule is therefore worth urgent consideration in this country: small-scale suppliers of goods and services will be able to use ipso facto clauses (without court approval) until at least June 30 this year. This balances the long-term benefits of restricting ipso facto clauses against the need to keep small-scale suppliers in business during the present crisis. A similar moratorium could be quickly and simply implemented in Australia.
Rebalance of power
Longer term, another new British provision would be widely welcomed in Austra…
Read the full article at: https://www.afr.com/policy/economy/no-quarantine-for-new-ideas-on-handling-company-collapses-20200611-p551oa
