DOCSLIB.ORG

The Concept of Fundamental Breach and Avoidance Under CISG

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Concept of Fundamental Breach and Avoidance Under CISG The Concept of Fundamental Breach and Avoidance under CISG A thesis submitted for the degree of Doctor of Philosophy By Amir Al-Hajaj School of Law Brunel University 2015 Abstract This study explores the concept of fundamental breach and the remedy of avoidance under the CISG. It examines CISG literature and case law in the area of avoidance and identifies several theoretical and practical issues associated with the current understanding of avoidance as a remedy of last resort. Almost every aspect of the CISG is open to interpretation because there is neither a higher court to ensure its uniform application nor official guidance on disputed provisions. This fact is very clear with regard to the remedy of avoidance and the concept of fundamental breach. This study addresses the legal and practical problems associated with this area of research. This study proposes that the current understanding of the CISG’s remedy of avoidance as a remedy of last resort is not truly reconcilable with the legal practices in this area. Courts and arbitral tribunals have occasionally ruled in favour of avoidance without discussing whether there was still a possibility for the aggrieved party to benefit from the defective performance in some other way. This study shows that in cases where the right to avoid the contract arises, whilst the principle of favor contractus should not be neglected, it plays a far less significant role than other CISG general principles such as protecting trust in international trade, the good faith principle, reasonability, the principle of full compensation and the principle that promises must be observed. By employing the fundamental breach that is based on depriving the promisee of his legitimate expectations as seen from the promisor or a reasonable promisor’s perspective, the CISG provides judges and arbitrators with ample tools to apply their discretion on a case by case basis in order to judge whether avoidance was rightfully declared. There is no single abstract rule that governs the fundamentality of the breach under the CISG. a Declaration This thesis has not been accepted in any previous application for a degree. The work on which the thesis is based has been done entirely by the candidate. b Acknowledgements I gratefully thank my academic advisor, Professor Dr. Holger Sutschet, for his supervision, advice and guidance from the very early stages of this research. I am sincerely grateful to him for sharing his illuminating views on the issues relating to this project whilst allowing me the freedom to work in my own way. My sincere gratitude also goes to Prof. Dr. Muhammed Korotana for his constructive comments on this thesis and offering me valuable advice towards its completion. I also acknowledge Ms. Claire Mazer and Mr. Paul Bracken and the library staff of Brunel University for providing guidance with regard to making the best use of library resources and advice with regard to the writing style and structure of the research. Words fail me to express my appreciation to the examiner committee for providing valuable recommendations that improved this research. Finally, I would like to thank everybody who was important in the successful realization of this thesis as well as expressing my regret that I could not mention each person individually. c Dedication For my father, in memoriam d Cases Acrylic Blankets Case Appellate Court Koblenz, Germany (31 January 1997) Airbag Parts Case Appellate Court Dresden, Germany (11 June 2007) Alain Veyron v Ambrosio Appellate Court Grenoble, France (26 April 1995) Antique Jaguar Sports Car Case Appellate Court Karlruhe, Germany (14 February 2008) Apple Juice Concentrate Case Appellate Court Stuttgart, Germany (12 March 2001) Arens Sondermaschinen GmbH v Smit Draad/Draad Nijmegent BV Netherlands (7 October 2008) Gerechtshof [Appellate Court] Arnhem Australian Raw Wool Case CIETAC Arbitration Proceedings, China (6 January 1999). Auto Case Appellate Court München, Germany (19 October 2006) Automobile Case Appellate Court Naumburg, Germany (27 April 1999) Automobile Case CIETAC Arbitration Proceedings, China (December 2006) Automobile Case District Court Freiburg, Germany (22 August 2002) Bacon Case District Court Bielefeld, Germany (18 January 1991) Banks Hardwoods Florida LLC v Iglesias SA Federal District Court Florida, United States (29 October 2009) Bedial v Müggenburg Appellate Court Argentina (31 October 1995) Beijing Light Automobile Co v Connell Stockholm Chamber of Commerce Arbitration Award (5 June 1998) Bielloni Castello v EGO (Printer Device Case) Appellate Court Milan, Italy (11 December 1998) BRI Production ‘Bonaventure’ v Pan African Export Appellate Court Grenoble, France (22 February 1995) Case 196/1997 Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry (22 October 1998) Case 9978 ICC Arb (March 1999) Case On Apparatus For The Reduction Of Consumption Of Gasoline Appellate Court Castellón, Spain (21 March 2006) e Case Resolution No 7-P Constitutional Court of the Russian Federation (27 April 2001) Catalogue Case Commercial Court Zürich, Switzerland (21 September 1998) Cathode Ray Tube Case District Court Strasbourg, France (22 December 2006) Chemical Fertilizer Case ICC Arb Case No 8128 (1995) Circuit Boards Case Appellate Court Hamburg, Germany (5 October 1998) Clothes Case District Court Kassel, Germany (22 June 1995) Clothes Case District Court Oldenburg, Germany (27 March 1996) Clothes Case Lower Court Ludwigsburg, Germany (21 December 1990) CNC Machine Case Appellate Court Valais, Switzerland (21 February 2005) Cobalt Sulphate Case Supreme Court Germany (3 April 1996) Cocoa Beans Case Appellate Court Lugano, Cantone del Ticino, Switzerland (15 January 1998) Coke Case Appellate Court München, Germany (2 March 1994) Colour Concrete Block Production Line Case CIETAC Arbitration Proceedings, China (30 June 2007) Computer Components Case District Court Heidelberg, Germany (3 July 1992) Computer Motherboard Case Appellate Court Paris, France (7 October 2009) Computer Software and Hardware Case Commercial Court Zürich, Switzerland (17 February 2000) Conservas La Costeña v Lanín Compromex Arbitration Proceeding Mexico (29 April 1996) Copy Paper Case Appellate Court Lugano, Switzerland (12 February 1996) Cutlery Case Commercial Court Switzerland (26 September 1997) CV BV v W Bezirksgericht St Gallen, Präsidium (3 July 1997) Damstahl AS v ATI srl Højesteret (Supreme Court), Denmark (15 Feb 2001) Delchi Carrier v Rotorex Federal Appellate Court (2nd Circuit) United States (6 December 1995) Designer Clothes Case Appellate Court Köln, Germany (14 October 2002) f Diversitel Communications Inc v Glacier Bay, Inc Supreme Court of Justice Ontario, Canada (6 October 2003) Dividing Wall Panels Case Supreme Court Austria (29 June 1999) Downs Investment v Perwaja Steel Supreme Court of Queensland, Australia (17 November 2000) Downs Investments v Perwaja Steel Supreme Court of Queensland, Australia (12 October 2001) Ego Fruits v La Verja Begastri Appellate Court Grenoble, France (4 February 1999) Electrical Appliances Case ICC Arb Case No 8769 (December 1996) Fabric Case Appellate Court Bamberg, Germany (13 January 1999) Fabrics Case Appellate Court Düsseldorf, Germany (10 February 1994) Failure To Open Letter Of Credit And Penalty Clause Case ICC Arb Case No 7197 (1992) Fashion Textiles Case District Court München, Germany (3 July 1989) FCF SA v Adriafil Commerciale Srl Supreme Court Switzerland 4C.105/2000 (15 September 2000) Floor Tiles Case Appellate Court Stuttgart, Germany (28 February 2000) Foamed Board Machinery Case ICC Arb Case No 7585 (1992) Foliopack v Daniplast Court of First Instance Parma, Italy (24 November 1989) Frozen Bacon Case Appellate Court Hamm, Germany (22 September 1992) Frozen Meat Case Appellate Court Braunschweig, Germany (28 October 1999) Frozen Pork Case Appellate Court Frankfurt, Germany (29 January 2004) Frozen Stockfish Case Appellate Court Pontevedra, Spain (3 October 2002) Furniture Case Appellate Court Oldenburg, Germany (1 February 1995) Furniture Case Appellate Court Oldenburg, Germany (28 April 2000) Furniture Leather Case Appellate Court München, Germany (15 September 2004) Garment Case Commercial Court Aargau, Switzerland (19 December 1997) Globes Case District Court München, Germany (27 February 2002) g Hammer Mill Case CIETAC Arbitration Proceedings, China (May 2007) Hartman LLC v Grlic Plus LLC Appellate Court Montenegro (20 February 2007) Ice Cream Parlour Furnishings Case District Court Saarbrücken, Germany (26 March 1996) Implicit Agreement on Price Case Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, Russia 309/1993 (3 March 1995) In-line Skates Case Appellate Court Hamm, Germany (5 November 1997) Industrial Machinery Case District Court Reggio Emilia, Italy (3 July 2000) Internationale Jute Mattschappij v Marín Palomares Supreme Court Spain (28 January 2000) Iron Molybdenum Case Appellate Court Hamburg, Germany (28 February 1997) Italdecor v Yiu’s Industries Appellate Court Milan, Italy (20 March 1998) Jewelry Case Supreme Court Austria (28 April 2000) Knitware Case Lower Court Kehl, Germany (6 October 1995) L v SA C District Court Ieper, Belgium (18 February 2002) Leather Goods Case Appellate Court Munich, Germany (9 July 1997) Lumber Case Federal Supreme Court Switzerland (28 May 2002) Machine for Producing Hygienic Tissues Case Supreme Court Germany (3 November 1999) Machinery Case District Court Busto
Load more

Recommended publications
  • The Remedy of Avoidance of Contract Under CISG-General Remarks And
    THE REMEDY OF AVOIDANCE OF CONTRACT UNDER CISG—GENERAL REMARKS AND SPECIAL CASES Ulrich Magnus, Hamburg* A. INTRODUCTION Under the CISG, avoidance is the one-sided right of a party to terminate the contract by its mere declaration.1 Such termination of a contract is the hardest sword that a party to a sales contract can draw if the other party has breached the contract. No other remedy—claim for performance, price reduction, damages—has the same incisive effect. For, it not only deprives avoidance to the party in breach of the benefit of the contract including the lost profit and renders often futile prior investments; if it is the seller who has breached the contract he is also burdened with the risks of the goods. These risks of damage to, or even loss of, the goods are particularly high when the goods are already in a foreign country. In CISG sales, this is typically the case. The seller must then either retransport the goods with the respective costs or attempt to resell them on the foreign market, which he may not know very well. Rightfully declared avoidance can therefore be very burdensome to the seller. However, if it is the buyer who has breached the contract the consequences of termination may be hard for him, too, in particular if he already has resold the goods and now faces damages claims from his sub- buyers because of non-delivery or if he already made investments in expectation of the delivery. Therefore, it is clear that on the one hand the remedy of avoidance should not be granted too easily, but on the other hand there must be a borderline from where the innocent party must be entitled to bring the contract to an end.
    [Show full text]
  • Fundamental of Contract Law
    Fundamental Of Contract Law Instinctive and quaky Francois never schillerizing his microtones! Kin relabel her ormolus quiescently, she naturalize it inseparably. Bealle is theaceous: she hamshackles seasonally and cove her contingents. So you will include any contract of law Contract Wex US Law LII Legal Information Institute. What makes a contract null and void? The manner must prepare to rustic root dig the housewife or mall a material or fundamental term. Four fundamental construction contract rules Sage Advice. A fundamental breach then a contract occurs when local party seriously. Fundamental term Practical Law. An enforceable contract review be formed for a legal track and the. Fundamental Rights in European Contract Law PDF. For relief to substance and return of their legal. Fundamental term Practical Law Westlaw. What opening the 7 elements of last contract? Fundamental Breach a Contract Central European University. In various tracts of loss agreed upon what business with special disability. Elements of vast Contract Judicial Education Center. Contracts Law Fundamental Breach 4 Law School. Compete with respect of fiduciary obligation to recover damages is to act. 7 Essential Elements Of divorce Contract said You process to. Nancy Kim utilizes select case summaries and probable clause examples to illustrate doctrinal concepts and how rapid may blow a transaction The Fundamentals. What response an Unenforceable Contract Kira Systems. Contracts and Transaction Law Justia. The two fundamental questions in american law 2 The bargain theory approach to contracts and the economic view of consideration 3 Expectation damages. If that doctrine exists at father in Canadian law it applies to exclusion clauses Canadian courts should are the doctrine of repudiation not.
    [Show full text]
  • Important Concepts in Contract
    Munich Personal RePEc Archive Practical concepts in Contract Law Ehsan, zarrokh 14 August 2008 Online at https://mpra.ub.uni-muenchen.de/10077/ MPRA Paper No. 10077, posted 01 Jan 2009 09:21 UTC Practical concepts in Contract Law Author: EHSAN ZARROKH LL.M at university of Tehran E-mail: [email protected] TEL: 00989183395983 URL: http://www.zarrokh2007.20m.com Abstract A contract is a legally binding exchange of promises or agreement between parties that the law will enforce. Contract law is based on the Latin phrase pacta sunt servanda (literally, promises must be kept) [1]. Breach of a contract is recognised by the law and remedies can be provided. Almost everyone makes contracts everyday. Sometimes written contracts are required, e.g., when buying a house [2]. However the vast majority of contracts can be and are made orally, like buying a law text book, or a coffee at a shop. Contract law can be classified, as is habitual in civil law systems, as part of a general law of obligations (along with tort, unjust enrichment or restitution). Contractual formation Keywords: contract, important concepts, legal analyse, comparative. The Carbolic Smoke Ball offer, which bankrupted the Co. because it could not fulfill the terms it advertised In common law jurisdictions there are three key elements to the creation of a contract. These are offer and acceptance, consideration and an intention to create legal relations. In civil law systems the concept of consideration is not central. In addition, for some contracts formalities must be complied with under what is sometimes called a statute of frauds.
    [Show full text]
  • 36 Privity of Contract, Discharge, and Remedies
    Unit 26 Privity of Contract, Discharge, and Remedies 1 Pre-reading activity 1 Contract is usually defined as a binding agreement between two parties. Have you ever heard about a case where also „third party“ had a say? How would you explain the concept of „third party“ ? 2 Do you believe that extraordinary compensation awarded to a suffering party can deter other people from committing a similar wrong? 2 Reading for gist Skim the following cases and decide whether these statements are true or false: 1 Rookes was a draftsman in BOAC having resigned from his union. 2 His resignation appeared upon a threat of AESD to go on strike. 3 On the grounds of an open-shop agreement between Rookes´s employer and the union AESD threatened a strike. 4 Rookes should either have resigned from his job, or should have been fired. 5 BOAC immediately dismissed Rookes and paid him redundancy payment. 6 He received a proper notice together with one week salary. 7 Rookes said that the strike as the unlawful means had been used as a threat to induce BOAC to terminate the contract with him. 8 In his opinion, Lord Devlin stated that there were two situations in which damages are allowed to be punitive. 9 The principle of privity of contract in English law was established by the case Tweddle v Atkinson. 10 The merit of the case was that a marriage portion would be given to late William Guy. 11 The ruling of a court was that a promisor cannot bring an action if consideration from the promise did not move from him.
    [Show full text]
  • Supply of Goods Q&A: Ireland
    Supply of goods Q&A: Ireland by Adam Finlay and Catherine Walsh, McCann FitzGerald This document is published by Practical Law and can be found at: uk.practicallaw.com/w-022-1436 To learn more about legal solutions from Thomson Reuters, go to legal-solutions.co.uk This Q&A provides country-specific commentary on Standard document, Supply of goods agreement RESOURCE INFORMATION (with contract details cover sheet): Cross-border and Practice note, Supply of goods: Cross-border overview. RESOURCE ID This Q&A forms part of Cross-border commercial transactions. w-022-1436 RESOURCE TYPE Country Q&A General contract law framework • Intention to create legal relations. Intention may be implied from the subject matter or it may be STATUS expressed by the parties (see Rogers v Smith (16 July 1. What are the requirements under national law for Law stated as at 31-Aug-2019 1970), SC). a valid contract to exist? When does an agreement JURISDICTION take effect? 2. Are there any limitations on the legal capacity of Ireland a company to enter into a supply of goods contract? For a valid contract to exist, five elements must be satisfied: The most common type of company in Ireland, a private • Capacity to enter into a contract. A person company limited by shares (LTD), has full and unlimited must have a certain level of understanding and capacity to: judgement. Categories party that can give rise to lack of contractual capacity include: • Carry on and undertake any business activity. – minors; • Do any act. – prisoners; • Enter into any transactions. – persons suffering from mental incapacity; and (Section 38, Companies Act 2014.) – intoxicated persons.
    [Show full text]
  • Contents of a Contract Representations and Misrepresentations
    THE LAW OF INTERNATIONAL TRADE AND CARRIAGE OF GOODS CONTENTS OF A CONTRACT REPRESENTATIONS AND MISREPRESENTATIONS. General definition : A representation is a statement about a factual situation, current or historical, or about a person’s state of mind, including an opinion or belief. Examples include a statement about the condition of a ship or its location, opinions or beliefs about the condition or location of the ship, statements about the vessel’s ability to perform a particular task and statements about where the ship has been or what it has done. A misrepresentation is a false representation. Distinctions : It is important to distinguish representations made as part of negotiations or otherwise, which give rise to remedies in their own right from other statements (or representations) which give rise to actions in other areas of contract. The above must also be distinguished from statements which are of no legal significance whatsoever. A statement may :- a) be a representation which gives rise to remedies discussed in this section; or b) become incorporated as a term of a contract1 for example s12-15 SOGA 1979 ; or c) form the basis of a collateral contract Esso Petroleum v Marsden 2 : Shanklin Pier v Detol Products 3; City of Westminster Properties v Mudd 4 or d) be a mere tradesmanʹs puff as alleged in Carlill v Carbolic Smoke Ball Co.5 which gives rise to no rights whatsoever since no one relies on them or expects them to be true. e) be a throw away remark, made in jest or casual conversation, with no expectation that anyone might take it seriously or rely upon it.
    [Show full text]
  • Carriage of Goods Course Work
    Carriage of Goods Course Work Hasan KAYIKET* * Attorney at law. Carriage of Goods Course Work / KAYIKET his assignment will consider the significant legal issues that arise when the goods are carried by sea. This assignment will therefore consider a number of issues. However, the main focus will be on deviation and Tthe issues that arise in particular in respect of charterparty contracts and bill of lading as these are the most important legal issues that arise as a result of carriage of goods by sea. These legal issues can make it difficult to operate in relation to freight and claim for the return of the deposit. Although, it should also be recognised that the law has developed considerably with the onset of globalisation, meaning that international codes and laws are being created in an attempt to solve some of the issues that arise when the parties agreed to make contracts for carrying goods between the ports by ships. It is beter to start identifying the general principles of carriage of goods by sea and then a brief explanation of the case will be examined. Where the goods are carried by sea by the shipowner, either directly or with an agent, or a ship is provided, the agreement between the parties is called the contract of affreighment[1]. It could be said that there are some variety of contractual forms. In traditional differentiation, the contracts are divided in two which are classified as the charterparties and bill of lading[2]. The form of charterparty is an agreement that the shipowner provides an entire or a part of his vessel either for a specific destination or a period of time.
    [Show full text]
  • English Contract Law
    Dieser Artikel stammt von Frank Felgenträger und wurde in 1/2004 unter der Artikelnummer 8716 auf den Seiten von jurawelt.com publiziert. Die Adresse lautet www.jurawelt.com/artikel/8716. FRANK FELGENTRÄGER ENGLISH CONTRACT LAW Das folgende Skript ist als Mitschrift im Rahmen der Fachfremdsprachenausbildung (FFA) zur Englischen Rechtssprache an der Universität Bielefeld entstanden. Es erhebt keinen Anspruch auf Vollständigkeit, sondern soll als Anregung dienen, was zur Prüfung über das Englische Vertragsrecht gelernt werden kann. Introduction to English Law 2 CONTRACT LAW A. FORMATION OF A CONTRACT .................................................................. 5 I. Essential Requirements..........................................................................5 1. Agreement.......................................................................................5 a) Offer .........................................................................................5 b) Acceptance...............................................................................5 2. Intention to Create Legal Relations..................................................5 3. Capacity ..........................................................................................5 4. Consideration ..................................................................................5 5. No Conflict with Law or Public Policy Gemeinwohl ..........................5 6. Form................................................................................................5 II. Agreement..............................................................................................5
    [Show full text]
  • Termination of Contracts
    Section 11 – Part 3 SLIDE 1 – Termination of Contracts (Cover Page) SLIDE 2 Forms of contract termination Termination of a contract, also called cancellation and discharge, may occur for any of the following causes. Performance. A contract terminates when fully performed by the parties. It may also terminate for: - partial performance, if the parties agree - sufficient performance, if a court determines a party has sufficiently performed the contract, even though not to the full extent of every provision SLIDE 3 Forms of contract termination Infeasibility – An otherwise valid contract can be canceled if it is not possible to perform. Certain personal services contracts, for example, depend on the unique capabilities of one person which cannot be substituted by someone else. If such a person dies or is sufficiently disabled, the contract is cancelable. SLIDE 4 Forms of contract termination Agreement – Parties to a contract can agree to terminate, or renounce, the contract. If the parties wish to create a new contract to replace the cancelled contract, they must comply with the validity requirements for the new contract. Such substitution is called novation. SLIDE 5 Forms of contract termination Cooling-period rescission – Rescission is the act of nullifying a contract. In many states, parties to certain contracts are allowed a statutory amount of time after entering into a contract, or "cooling period", to rescind the contract without cause. No reason need be stated for the cancellation, and the cancelling party incurs no liability for performance. For example, consider the unsuspecting buyer of a lot in a new resort development. Such buyers are often the targets of hard-sell tactics which lead to a completed sales contract and a deposit.
    [Show full text]
  • Fundamental Breach of Contract: a Comparative Study of the CISG and Kyrgyz Law
    Fundamental Breach of Contract: A Comparative Study of the CISG and Kyrgyz Law by Zamirbek Mamytov LL.M. SHORT THESIS COURSE: International Business Transactions PROFESSOR: Markus Petsche Central European University Hungary, Budapest 1051, Nador utca 9. CEU eTD Collection © Central European University March 29, 2019 TABLE OF CONTENTS ABSTRACT ................................................................................................................................... ii INTRODUCTION......................................................................................................................... 1 CHAPTER I. THE LEGAL REGULATION OF THE CONCEPT OF FUNDAMENTAL BREACH OF CONTRACT UNDER THE CISG AND KYRGYZ LAW ............................... 5 1.CONCEPTUAL FRAMEWORK OF FUNDAMENTAL BREACH OF CONTRACT . 5 1.1. CISG ............................................................................................................................. 5 1.2. KYRGYZ LAW ........................................................................................................... 10 2. ELEMENTS OF FUNDAMENTAL BREACH OF CONTRACT ................................. 13 2.1. CISG .............................................................................................................................. 14 2.2. KYRGYZ LAW .............................................................................................................. 23 3. AVAILABLE REMEDIES AND THEIR CONSEQUENCES ....................................... 29 3.1. CISG .............................................................................................................................
    [Show full text]
  • Contracts February 2020
    PLEASE NOTE: As an enhancement to the materials we have created, where possible, external web links to those cases and legislation that were available on the CanLII website. Please note, however, that not all links are reliable. The incorrect links appear to be especially problematic for the statutes, especially if the complete citation for the statute is not present at that exact spot in the materials. If you use the web links, please always double-check to ensure that you are being directed to the correct place. ------ The Nova Scotia Barristers’ Society has prepared these Bar Review Materials for the sole purpose of assisting applicants to prepare for the Nova Scotia Bar Examination. These materials are reviewed and updated annually, and published May 1 each year as study materials for the upcoming July and January exams. These current materials are the study outlines for the July 2020 and January 2021 Bar Examinations and may be relied upon for that sole purpose. The materials are not intended to provide legal advice, and should not be relied upon by articled clerks, transfer applicants, lawyers or members of the public as a current statement of the law. Members of the public who access these materials are urged to seek legal advice and are specifically warned against reliance on them in any legal matter or for pursuit of any legal remedy. The Society will not be liable for any use you made of these materials, beyond their intended purpose. CONTRACTS FEBRUARY 2020 CONTENTS: I. WHAT IS A CONTRACT? .............................................................................................................................. 1 II. ESSENTIAL ELEMENTS OF CONTRACTS ..............................................................................................
    [Show full text]
  • COVID-19 - Answers to Key Questions: Managing Contract Performance Issues
    COVID-19 - Answers to Key Questions: Managing Contract Performance Issues As countries worldwide implement new and restrictive measures to combat the spread of COVID-19, many businesses are finding that they, or their business partners, are struggling or failing to meet existing contractual obligations. Do the unprecedented circumstances presented by COVID-19 mean that a defaulting party will always be excused from performing its obligations? The short answer is “no”. The full answer lies in the terms of the specific contract and the context of the non-performance. We focus below on a number of important contractual considerations, concentrating on key contracts, supply chain management issues, and revenue sources. We provide you with the answers to a variety of questions we are addressing at the moment. What practical steps should we take if trading will be disrupted in the next few weeks or months? From a legal and risk perspective your business can take a number of steps now, designed to ensure that it is as prepared as possible to manage its contractual obligations over the coming weeks and months. ■ Identify and focus on business critical contracts, focusing on revenue earning contracts, strategically important contracts, and those carrying large risks or liability exposure in relation to non-performance; ■ Evaluate third party dependencies; if performance issues are likely to be with a key third party, open communication channels early and directly to discuss likely performance impact; ■ Remember that your counterparties are likely
    [Show full text]