The global effects of the continuous high temperatures of late have been well reported in the media and at Clarion we’ve been seeing how some of our own food manufacturing clients have been suffering as a result of the heat.
The issues which a number of food manufacturers have recently been experiencing, due to the heatwave, revolve around contractual relationships with suppliers. Across our clients’ requests for advice, there have been several prevailing themes: crop failure due to sustained hot weather; inability of suppliers to deliver products either in the agreed quantities or at agreed prices; and pressure exerted by suppliers to agree contractual variations on significantly less favourable terms in order to guarantee continuity of supply.
If you are a food manufacturer and find yourself in similar circumstances, this blog explains the legalese which will invariably be quoted by suppliers. It will also tell you, how, if it all, that terminology applies to you as well as some of the legal concepts and issues that you need to consider if you end up in a position where you need to bring a claim against one of your suppliers.
Please see our contract variation blog for more details.