At Lunch & Law on 5 May 2022 at Technopark Winterthur, Dr Oliver Fritschi highlighted the legal challenges surrounding supply bottlenecks, delays and price increases – an issue that has directly affected many SMEs in recent years.
Global causes, local effects
Pandemic-related lockdowns, disrupted supply chains, raw material shortages, skilled labour shortages and geopolitical events such as the war in Ukraine have profoundly changed global supply conditions. The result: longer transport times, higher costs and increasingly uncertain contractual conditions for companies in Switzerland.
Contracts in crisis – crisis in contract law?
Dr Fritschi demonstrated in a practical manner how important a clear contractual basis is in times of economic uncertainty. Although legal precautions cannot prevent bottlenecks, they can help to
- minimise risks
- create room for negotiation
- reduce litigation risks
Possible solutions: force majeure & contract adjustment
A central point of the presentation was the correct handling of force majeure and adjustment clauses. Unforeseeable events beyond the control of the contracting parties can temporarily or permanently release them from their performance obligations – provided that the contract contains corresponding provisions.
Dr Fritschi gave specific tips on how companies can formulate force majeure clauses in a legally secure manner so that they are prepared in the event of a crisis:
- Definition of the events concerned (e.g. pandemic, war, natural disaster)
- Notification requirements and deadlines
- Clear regulation of the consequences (temporary or permanent refusal to perform)
Conclusion
The current situation clearly shows that contracts must be designed to be crisis-proof. Careful review and clear wording of adjustment, liability and termination clauses are crucial for SMEs to be able to react flexibly to future market changes.
The presentation given at the event can be viewed here.
