McNees Minute: COVID Supply Chains

Sponsored Content: McNees Minute

David A. Noll, Esq.

dnoll@mcneeslaw.com – 717-237-5453

A significant impact of COVID-19 on businesses was the disruption in Supply chains and on service providers key to the business’s operations. These kinds of disruptions can cause the Failure to perform under a contract, either by your business or the other party’s.  While business closures made this point moot, reopening has many businesses wondering whether their primary suppliers (and customers) are ready to swing back into action. Many contracts contain a “force majeure clause”, allowing forgiveness of performance of events outside of the party’s control.  As businesses reopen, they should confirm that (i) they will be able to comply with the terms of their standing contracts, and (ii) their key suppliers are not still subject to events that a force majeure would forgive performance.  If your business is not able to operate at 100%, your contracts may contain a “force majeure” provision that provides some protection. 

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