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3. On the 15 April 2021, the board sent Creative a letter of demand. On the 30 April 2021, a director of Creative wrote back,
3. On the 15 April 2021, the board sent Creative a letter of demand. On the 30 April 2021, a director of Creative wrote back, stating the following: iv. That as a result of the government lock down regulations that were promulgated on the 25 March 2020 following the outbreak of the Covid- 19 pandemic, the company was unable to conduct its business. It had therefore earned no income and was unable to pay the rent. Although the lockdown regulations had been incrementally relaxed, Creative's customer's had still not been prepared to engage in full consultations and site visits and many customers had themselves become insolvent. Therefore, Creative's financial position was still very poor. In the circumstances, Creative was unable to pay the rent and denied any liability for payment of the rent. Advise the board of CEE its legal rights in these circumstances. In your answer you must consider the effect of covid -19 on contracts in general. (20 marks)
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