reusch­law White­pa­per: Deli­very stops, con­tract adjus­t­ments and con­tract termination

Deli­very stops, con­tract adjus­t­ments and con­tract ter­mi­na­ti­on in sup­pli­er constellations

A dyna­mic glo­bal mar­ket, cri­ses and some­ti­mes explo­si­ve increa­ses in ener­gy and raw mate­ri­al pri­ces in recent years – many play­ers in the sup­p­ly chain are curr­ent­ly facing major chal­lenges. In addi­ti­on, the­re are often long-term con­tracts with fixed pri­ces, which are put­ting sup­pli­ers in par­ti­cu­lar under incre­asing pres­su­re. Con­tract adjus­t­ments, deli­very stops or even con­tract ter­mi­na­ti­on pro­mi­se a reme­dy – but the hurd­les are high and the risks of care­less action should not be underestimated. 

Sup­p­ly bot­t­len­ecks and increased cos­ts are making it incre­asing­ly dif­fi­cult for sup­pli­ers to ful­fill their (often long-term) deli­very obli­ga­ti­ons. So, what should you do if the per­for­mance struc­tu­re within the indi­vi­du­al con­tracts along the sup­p­ly chain is dis­rupt­ed – for exam­p­le due to a shorta­ge of raw mate­ri­als and pri­ce increa­ses? And how to react if the con­trac­tu­al part­ner refu­ses to adjust the contract?

In this white­pa­per, Flo­ri­an Koch, Thors­ten Deeg and Dani­el Wuhr­mann ans­wer the­se ques­ti­ons and pro­vi­des an in-depth insight into the legal opti­ons and risks that sup­pli­ers must con­sider in times of dis­rupt­ed sup­p­ly chains and shar­ply rising cos­ts when it comes to con­tract adjus­t­ments, deli­very stop­pa­ges, or terminations—especially when the con­trac­ting part­ner refu­ses to agree to an adjustment.

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reusch­law White­pa­per | Deli­very stops, con­tract adjus­t­ments and con­tract termination
Aut­hors: Dani­el Wuhr­mann / Thors­ten Deeg