Minimizing risks in advance: possible contractual solutions Silvia Bortolotti

The distributor has difficulties in respecting those terms The distribution contract provides for a payment on open account: 60 days / date of the invoice The distributor has difficulties in respecting those terms

Supplier May I change the terms of payment? Can I stop supplying the distributor with the goods? Can I terminate the contract?

Supplier’s right to modify the payment’s conditions Contractual solutions

Supplier’s right to suspend deliveries - Can I suspend delivery of products, referred to orders that I have already accepted? - May I refrain from making further supplies to the distributor?

Contractual clause: “Should the Supplier have reasons to fear that the Distributor cannot or does not intend to pay the Products on the agreed date, he may make delivery dependant on obtaining an appropriate payment guarantee (e.g. surety or bank guarantee). Furthermore the Supplier may, in case of delayed payment, unilaterally modify the terms of payment of other supplies and/or suspend their performance until he obtains appropriate payment guarantees.”

Supplier’s right to terminate the distribution contract Contractual solutions

Thank you for your kind attention! Silvia Bortolotti