The corona virus (Covid 19) is currently keeping the whole world on tenterhooks and is leading to the greatest uncertainty in all areas of life – and thus increasingly endangering order processing in the business world. The reasons for this are manifold: Supply bottlenecks from your own suppliers, collapse of the supply chains (loss of logistics, border closures), loss of personnel due to infection in your own company or quarantine measures, company closures, sealing off individual regions or travel restrictions.

This can cause the following problems:

  • What happens if agreed delivery dates cannot be met?
  • What do you do if your own production comes to a standstill because the required vendor parts do not arrive (on time)?
  • Is the supplier allowed to deliver late? Is the obligation to deliver suspended?
  • Must payment be made despite non-delivery or may the supplier demand payment despite non-delivery?
  • Is a termination of the contract possible?
  • Is a replacement procurement from another supplier possible? If so, who bears the costs?
  • When must one expect claims for damages or when can one assert them?
  • Are expenses for services not required (flights, hotels, participation fees, etc.) refunded?

We now consider the following procedure to be sensible and necessary from a legal perspective:

  • Identification of the affected businesses: Which orders can be fulfilled as agreed and which cannot.
  • For all endangered orders:
    • What is the contractual basis: General terms and conditions or individual contract?
    • What is the content of the general terms and conditions or the individual contract, in particular regulations on:
      • Delivery date and place of delivery,
      • Rights of termination,
      • force majeure,
      • Limitation of liability,
      • Absolute or relative fixed business?
      • Has the supplier assumed the procurement risk?
      • Which formal notification and information obligations exist?

Also check your insurance policy:

  • Is there insurance cover?
  • Which formal information, notification and cooperation obligations exist towards the insurance company according to the insurance contract?

This list is intended to give a first overview of typical questions and does not claim to be complete. Each individual case must be examined and evaluated separately.

We would be pleased to support you in reviewing and checking your contracts and in communicating and negotiating with your business partners. Please do not hesitate to contact us.