All throughout the UK, there are a huge number of contracts which will have been affected by Coronavirus.

In light of this, the statement outlined below replaces what was published by the Competition and Markets Authority (CMA) on 30 April 2020. The CMA’s view remains that a consumer will generally be entitled to a refund when they have paid money in advance for services or goods that can no longer be provided because of COVID-19.

As the circumstances and public health measures relating to the pandemic have developed over time, CMA have updated the statement to cover additional issues. It now covers contracts that can’t go ahead due to lockdown laws, limited exceptions to full refunds, ongoing contracts, non-refundable payments and fees, credits and rebooking and payments for future services.

It also outlines contracts that are partially affected by lockdown laws, changing terms in existing contracts during the pandemic, terms in new contracts which relate to Coronavirus and cancellations relating to Government guidance and cancellation under the standard terms and conditions of a contract.

While there is a lot of information covered in the document, it’s important that businesses are aware the guidance exists and how it affects the relationship between companies and their customers.

You can find the full update on the website.

If you have any issues with contracts entered into and need expert advice, please talk to us and we can recommend a local solicitor to help.

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