As the recent, widely reported dispute between Tesco and Unilever demonstrates, the uncertainty, market turmoil and exchange rate volatility created by the Brexit vote has opened the door for a variety of disagreements and disputes within supply chains. Disagreements over prices and continuity of supply are not unusual, but the current situation has created a further angle which suppliers may seek to exploit
Can your supplier increase the price you pay as a result of Brexit?
Is there a price escalation mechanism?
Does your contract provide for the parties to seek to agree changes in pricing on the occurrence of certain events?
How and when do these provisions operate?
For instance, what are the relevant trigger events?
Is any price review upwards only, or could prices move both ways?
Has the correct procedure been followed (timing, notices etc.)?
Are provisions pursuant to which the parties are to agree or calculate a new pricing structure sufficiently certain to amount to enforceable obligations?
What if your supplier threatens to cease supply, unless you agree to a price increase?
Can you go elsewhere?
The content of this page is a summary of the law in force at the date of publication and is not exhaustive, nor does it contain definitive advice. Specialist legal advice should be sought in relation to any queries that may arise.