Extreme Weather

If your activities are susceptible to extremes of weather then you will be aware of the significant commercial problems that can arise.

With parts of the South West effectively cut off due to flooding this winter, suppliers have either been unable to make deliveries to the region, or those that have got through have been significantly delayed.  Clearly this raises questions about contractual performance and any possible remedies for breach of contract.

The first port of call must be the supply contract.  If it states that “time is of the essence” for delivery dates, then the supplier could be liable if the delivery is delayed.

But what if the weather is so severe that you cannot even despatch products from the factory gate?  Power and communication networks can fail, and your employees may not be able to travel to their usual place of work.  In such circumstances you may be able to rely on a “Force Majeure” clause in your contract.

These provisions suspend a contracting party’s obligations and provide that the non-performing party is not liable for as long as the force majeure event continues.  In commercial situations they can provide welcome relief and allow that party to focus on how best to resolve the situation.

So if you are vulnerable to external events that could cause supply chain problems it is essential that your contracts contain appropriate protection to prevent a bad situation becoming a lot worse.  Please contact our commercial department by emailing commercial@tolhurstfisher.com for further information.