Foley & Lardner LLP Senior Counsel Leah Imbrogno is quoted in the Asia Business Law Journal article, “Riding out the storm,” about the significant supply chain pain companies are feeling as the global economy grapples with war in Europe, lingering pandemic lockdowns in China, and growing inflation.
Imbrogno said, “We advise that companies dealing with these issues review their current agreements to see if there is any relief available in their pricing provisions such as, on the buy side, terms relating to fixed pricing or, on the sell side, ways to pass increased costs on to customers. Companies entering into new agreements should consider including pricing provisions that are tied to indexing, in order to decrease inflationary exposure moving forward, and including provisions requiring the parties to revisit or renegotiate prices at set points throughout the duration of their agreements.”
“While the timing and severity of any such recession is very difficult to predict, companies should prepare and strategize in advance so they are not caught by surprise if and when a recession occurs,” she added.
