The expected stabilisation at the beginning of the year has not materialised, in some part due to the geopolitical developments that have been delivered by the USA. Larger businesses generally have a greater capacity to cope with ongoing pressures but smaller companies are not always able to.
Businesses of any size must be sure that their contracts have clauses that protect them in the event of a challenge and force majeure clauses have become increasingly important and play a critical role when events occur that are beyond the control of the parties involved. Traditionally, these clauses covered natural disasters, wars, or other Acts of God. The European Union’s efforts to restrict dependence on existing supply agreements highlight the fact that force majeure clauses are not just a private contractual tool but is also a factor in regulatory changes.
