Corey Day and Craig Pacheco Look at Contract Considerations for a Distillery Hit by Supply Chain Disruptions

In a column for Craft Spirits, Corey Day and Craig Pacheco provide some general guidance for a distillery industry business affected by supply chain issues to evaluate and limit its liability from disruptions in its operations. Litigator and alcoholic beverage attorney Day and corporate attorney Pacheco recommend that a distiller:

• Audit its material obligations by organizing all its written contracts with customers and suppliers and confirming if it has any material oral agreements or other “handshake” deals.
• Be sure of any promised deliveries and understand what the potential consequences are of missing them.
• Ensure it has avenues for communication and reasonable negotiation between decision makers.
• Look to a contract’s force majeure clause if the contract cannot be amended or modified to both parties’ satisfaction.

You can read the full article here.