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How can global events lead to a contract breach?

On Behalf of | Nov 19, 2023 | International Trade Litigation |

While globalization has allowed U.S. businesses to reach more markets and source cheaper materials and labor, it is not without problems. Recent global events present challenges that could result in one party breaching its contract with another.

Here are some examples of how an overseas event could affect you:


While there are always wars occurring somewhere, most have little effect on the majority of U.S. businesses. Ongoing conflicts in Ukraine and the Middle East may have (or already have had) a greater effect on the supply of specific goods and transport costs, leading to disputes where a party cannot deliver the goods agreed or do so for the price agreed.

Weather events

You will almost certainly have noticed that there have been some major weather events in the past few years. They can cause all sorts of problems if you are only trading in the U.S. but even more so if you deal with overseas countries as you are subject to delays caused by problematic weather events in those countries and along the transport routes you work on as well as those here in the U.S.

A natural disaster in an area you buy materials from could mean your supplier cannot provide the quantities they agreed to. A storm that forces a ship to delay setting out to sea could delay the delivery of materials to you or the delivery of goods you send out. An overseas disaster that affects someone you export to could mean they no longer need or can pay for the goods they contracted you to provide

If global events lead you to experience contract breaches in your overseas trade relationships, it’s wise to learn more about your legal options.