April 2020 Charity & NFP Law Update Sean S. Carter and Heidi LeBlanc Practical Strategies for Dealing with Termination of Contracts in a Pandemic The ongoing COVID-19 pandemic in Canada has caused an unprecedented situation with a unique set of challenges for organizations, including charities and not-for-profits (“NFPs”). Due to the governmental PAGE 6 OF 20 April 2020 www.carters.ca www.charitylaw.ca restrictions and the continually evolving advisories and guidelines, organizations have been forced to face difficult decisions regarding operations, not just in the immediate future, but also to make decisions regarding future operations that are weeks and months down the road. As a result, many charities and NFPs are having to consider cancellation or postponement of events and programs through either cancelling those events outright or rescheduling a wide variety of contractual obligations in the face of the COVID-19 pandemic. The results are far-reaching, including the loss of donations and/or program-related income, which could mean potentially significant monetary losses. As such, it is critical to consider what practical strategies may be available to help minimize or possibly eliminate contractual losses or damages. This Bulletin outlines some practical strategies for charities and NFPs to consider in this regard. For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 472. Read the April 2020 Charity & NFP Law Update Direction and Control: Current Regime and Alternatives
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