Supply Chain Issues? Look Out For Threatened Breach

As the global economy continues to deal with the fallout of the ongoing COVID-19 pandemic, many businesses are likely to have concerns about their supply chain and negotiations over the late payment of invoices are becoming more common as companies struggle with cash flow. The recent case of Medina Dairy Ltd v Nampak Plastics Europe Ltd¹ illustrates that companies threatening to withhold supply to get paid should be careful to do so within precise contractual terms, and companies that receive these threats should be aware of the terms of the contract, compared to what is being threatened. In the event that Court action becomes necessary, positioning is key.

What happened in Medina?