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ARTICLE · 13 APRIL 2018

Mitigating The Risks Involved With Ending A Business Relationship

All good things must come to an end. So it is in life, and so it is in business.

United StatesCorporate/Commercial Law

All good things must come to an end.  So it is in life, and so it is in business.  Eventually all business relationships, including manufacturing relationships, will come to an end. Some relationships end with nary more than a whimper, as both parties are content to move on and deploy their resources elsewhere.  More often, the end of a business relationship is an acrimonious affair in which one (or both parties) feels it has been wronged or treated unfairly.

The end of a business relationship is an inflection point that can create a significant risk for manufacturers if not properly managed.  The termination itself may be viewed as improper.  Even if the non-terminating party grudgingly accepts that the relationship is ending, there are likely to be other claims.  Disputes that otherwise might have been resolved by negotiating future business terms, or suppressed because the benefit of the relationship outweighed the claim, can erupt into litigation when parties no

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