Winning Strategies for Re-Negotiating or Terminating Commercial Contracts
Tower 42 25 Old Broad Street
Arnold & Porter Kaye Scholer invites you to a roundtable event to discuss re-negotiating or terminating commercial contracts. Economic, political and technological change is all around us, and with it comes increased pressure to re-negotiate or end existing contractual arrangements that may no longer support the original objectives of one or other of the parties. For example:
- What happens when contracts become uneconomical for suppliers to perform because of currency fluctuations or increased labour costs?
- Or, when customer organisations want to downsize or escape existing commitments because the original business case has changed?
- Robotics and Increased Automation
- And what about the emergence of robotics and cost savings associated with automation? Could this affect existing, longer-term arrangements such as outsourcing contracts?
- Sub-Standard Performance
- Termination scenarios can also arise where one party has simply failed to perform its obligations and the other decides to enforce its rights under the contract.
- These scenarios can create conflict—for example, when one side wants an easy “out” but is blocked by demands for substantial compensation by the other or when there is a dispute over whether any sub-standard performance justifies termination.
- We will work through a case study highlighting a selection of legal pitfalls to avoid when these situations arise and our top tips for achieving successful outcomes.
- Grounds for termination
- Termination notices
- Preservation of rights
- Remediable breach
- Losing the right to terminate
- Generating leverage and protective correspondence
- Using ADR techniques to achieve successful outcomes
- Common mistakes
In addition to our London team, Maximilian Reichl from our Frankfurt office will be on hand to provide a German perspective and answer any questions from participants who may be considering German law and jurisdiction and termination issues arising in that context.