The coronavirus (Covid-19) is a worldwide pandemic issue, not only for people’s health, but also for their business.
In fact, there are many supply contracts between commercial parties that could be affected by significant variations.
It is nowadays more difficult for buyers to obtain materials … and suppliers, on the other hand, are demanding more in relation to materials’ scarcity.
So, in case of supply interruption due to external causes, Coronavirus in our case, how should we behave? What carefulness should we take?
First of all as suppliers, we must protect our business partners by informing them of the delay in fulfilling their request and collect correspondence with them as evidence.
Most international contracts stipulate that in case of force majeure contracts are not terminated, but only postponed for the duration of the legitimate impediment.
We suggest you reading the article “COVID-19: implications for business” by McKinsey & Company
It gives a complete overview of the global situation and suggests some immediate actions to be take in place.
