Suppliers ‘to escape legal penalties’
3 April 2012
Companies whose maintenance and repair contracts are disrupted by government restrictions to counter the food and mouth outbreak are unlikely to get any redress in the courts, according to a supply chain expert.
Force majeure clauses, citing forces beyond a supplier’s or client’s control, will enable most companies to escape legal action, said Colin Cram, head of the government research councils’ Joint Procurement Unit and a member of CIPS’s contracts management group.
“For a contract to be binding, it must be possible to perform,” Cram said. “If a supplier could...