The modern day supply chain is ever more complex. Add to
that the fact that it is under an almost daily attack from the
current political climate. This creates an environment of
uncertainty that is a good reason to reassess whether your supply
chain agreements are drafted with a mind toward key provisions that
can protect your company.
On the indemnification and consequential damage disclaimer
topics, one must always be mindful of the interplay of the risk
allocation provisions in a contract. For example, if the
agreement contains a broad indemnity stating the indemnifying party
will indemnify the indemnified party against all losses resulting
from specified causes, and also includes a consequential damage
disclaimer providing that neither party will be responsible to the
other party for consequential damages, the agreement has an
inherent inconsistency, which is not good for either side because
neither can depend on an outcome (that is, the indemnified party
does
