This webinar focussed on an issue we expect to move rapidly to the forefront of long-term trading relationships: defaults in long-term sale and purchase contracts.
Following our recent discussion on force majeure, escalating developments in and around the Strait of Hormuz mean that market disruption is no longer a theoretical risk. As supply chains tighten, costs rise and performance becomes increasingly difficult or uneconomic, defaults under long-term contracts are likely to follow in short order. Parties should now be preparing for how these defaults may arise, how they will be characterised and how disputes may play out.
Against this backdrop, this timely session explored the legal and commercial consequences of default in long-term contracts across the energy, commodities and shipping markets and how parties can best protect their positions as events continue to unfold.
Sumeet Malhotra, Singapore Partner and Global Head – Commodities and International Trade Sector Group, shared practical insights drawn from live market issues and dispute trends.
Key topics included:
- the Strait of Hormuz situation and why force majeure is only the beginning;
- how and when force majeure scenarios may translate into contractual defaults;
- anticipating default risk in long-term sale and purchase agreements;
- termination rights, damages exposure and strategic considerations;
- managing dispute risk and preserving commercial leverage; and
- a interactive Q&A.
