The effects of the coronavirus on national and international supply relationships are already being noticeable. Due to the numerous measures that are being taken worldwide against the spread of the coronavirus, the supply of important raw materials and goods has often come to a standstill.
Important production facilities are currently closed due to the corona pandemic; production is temporarily stopped. A - timely - delivery of goods and raw materials is no longer guaranteed due to border closures and other precautionary measures.
There are numerous problems with deliveries. Further developments are difficult to anticipate. In this article we give a brief overview of the legal aspects of the effects of the coronavirus on supply relationships as well as some recommendations for start-ups. Depending on the industry and business model, the almost tsunami-like crisis has affected large, renowned companies as well as start-ups but the latter have to overcome particularly great challenges in many respects.
As regards to supply relations, the main problems are that. In the case of impediments to performance, the contractual provisions these take precedence and the statutory law on defective performance under German civil law - insofar as this is relevant - must be taken into account. Contracts often contain specific provisions on the exchange of services and the consequences of defective performance, for example in the form of contractual penalties.
General terms and conditions in particular often contain so-called "force majeure" clauses. According to such clauses, the parties are not responsible for any failures in performance due to "force majeure". Some of these clauses also provide that the parties can withdraw from the contract or at least temporarily be released from their obligation to perform in the event of "force majeure".
