More News - Alerts and Regulations

Force majeure: The problem of legal definition in German law

March 13, 2017 at 10:56 AM , Der AUDITOR
Play report as audio

Sharp increases in price are a risk, absolute nuisance and very painful for many companies in the food industry. The problem is that although sudden increases in price may be very common in trading with commodities, force majeure cases frequently drive the parties involved to despair.

Regional natural disasters, global climate changes or political measures inevitably result in sudden increases in production prices that disrupt any purchasing plans the exporters may have. If they then refuse to meet any contracts they may have with any (German) importers this will pose considerably problems for them in satisfying their customers in the baking industry. Price hikes are an irritating risk most companies prefer to pass on to others. Some simply give up because their market position is too weak, whereas other opt for a time consuming and expensive lawsuit.

A sober app

View related articles

Go to the News Overview
Nuts
Dec 22, 2023
AMSTERDAM/MANILA. With Houthi rebel attacks on vessels effectively blocking the Suez Canal cargo is delayed and freight rates have risen suspiciously fast. While Danone has denied reports of short-term supply chain delays, agri-food suppliers dealing in Asia and east Africa have issued stark warnings to their customers.
Alerts and Regulations
Apr 11, 2022
BRUSSELS. As part of the fifth major sanctions package against Russia, carriers from Russia and Belarus have been banned from crossing EU borders since Saturday. This is intended to hit the Russian economy even harder. However, there are some exceptions for the time being.
EU regulations
Sep 3, 2020
FRANKFURT/BRUSSELS. Talks over the possible introduction of a hydrocyanic acid limit for flaxseed for human consumption are currently underway throughout Europe. The Auditor has contacted the European Commission and a leading flaxseed trader in Belgium to find out more.
Alerts and Regulations
Apr 2, 2020
LUHANSK. A "Mundus Agri" correspondent, living in the Luhansk People's Republic, outlines the enormous impact the outbreak of the new coronavirus has on daily life. The first infection has only recently been confirmed. Measures to contain the virus are only starting to be implemented.