These traps can damage your organization by reducing the efficiency of your supply chain, or they can directly sap your profits by wasting your time and your capital. Fortunately, all can be avoided with an element of legal savvy and the knowledge of what you need to be looking for. Read on for four of the most common contract traps for purchasers.
Force Majeure Clause
• Force Majeure clauses nullify contracts if an event occurs which is beyond the control of either party named in the document.
• A purchaser may protect themselves from these clauses by inserting specific provisions for certain occurrences which may be more likely than others.
• They may also ensure that the wording of the clause ensures that the supplier or manufacturer takes all possible actions to ensure the success of the transaction.”
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