Jul 14, 2020

COVID-19 & Force Majeure – Guaranteed Minimum Royalties No More?

Plan B Apparel Industry

Is it still true, as the old saying goes, that it is better to offer no excuse than a bad one? The old adage has trouble holding up in today’s climate.  Because of the significant and detrimental impact that COVID-19 has had on the economy, and especially the apparel industry, good excuses are aplenty for licensees in the apparel licensing industry. Due to the pandemic, brand apparel licensees that have entered into license agreements with licensors to use their brand names have had unanticipated difficulty meeting the minimum sales standards and paying minimum royalties. In addition, those licensees are now… Read more

May 19, 2015

Force Majeure Events and Contract Clauses

Recent events have again demonstrated the fragility of the network of overseas suppliers for industries ranging from automobile manufacturers to big-box retailers. Supply disruptions can be caused by labor disputes at port facilities; by piracy, cyclones or other events that disrupt goods-in-transit; and by natural or man-made events such as earthquakes or armed conflicts that disrupt production or transportation in an overseas country. Unfortunately, the construction industry is not immune to disruptions in the supply of goods from foreign sources. Most construction contracts include a force majeure provision; however, not all such provisions are created equal. Some provisions do not… Read more