We have seen many businesses end contracts and move their work out of Russia due to the war in Ukraine. In the current situation, you might conclude that it is best to do the same, and terminate any existing contracts with Russian suppliers. You might also be re-evaluating who your organisation chooses to work with or for in light of social priorities. If so, how do you terminate those contracts you already have that conflict with your organisation's ethics or values?
Termination provisions in contracts can be convoluted and the common law rights are equally confusing. Whilst terminating a contract will mean all obligations between the parties come to an end, it can go wrong, leading to heavy damages claims.
We've written a blog post for Co-operatives UK on terminating a contract on grounds of ethical, moral or social conflict, explaining some of the potential options and pitfalls.
If you are thinking about terminating a contract on ethical or social grounds, please get in touch as we can help you navigate the process.
While you might take great care to evaluate the business practices of new business partner organisations, sometimes things change or go wrong once the contract has been entered into. This may be due to unfolding political situations, as we have seen in Ukraine – or a supplier’s actions conflicting with your values in another way. What can you do?