Force Majeure and Commercial Impracticability in Purchasing and Sales Contracts

Your supplier had a plant damaged by an earthquake and is claiming it is excused from filling your orders. A transportation strike has stranded a shipment and your supplier claims it is not responsible for any delay. Or your supplier is claiming that a shortage of a raw material and spike in prices has made it impossible for it to perform. What are your rights? Is your supplier really excused from fulfilling the contract, and if so what must they do to minimize harm to you and what actions can you take to protect yourself? This OnDemand Webinar will provide you a basic understanding of your rights in these circumstances. You will receive a primer on the types of events that often do, and do not, excuse performance under a force majeure clause of the UCC’s doctrine of commercial impracticability, how production capacity that is only partially affected needs to be allocated among customers, and notifications to which you are entitled. Focused on practical steps, and not just theory, you will be interested in this timely discussion of what to do when disaster strikes.

Authors

Agenda

Overview

When Can Performance Be Excused

• Typical Force Majeure Clauses
• Commercial Impracticability or Failure of Presupposed Conditions Under UCC 2-615
• Typical Events Excusing Performance

Procedures When Performance Is Excused

• Notice Requirements
• Allocation Where Performance Is Only Partially Excused
• When a Force Majeure Event Ends

Preventing Problems: Tips for Drafting Force Majeure Clauses

Conclusion and Questions

Additional Formats