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Home » An International Crisis Impacts Your Business

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ColumnsLegal PerspectivesFacility Design

An International Crisis Impacts Your Business

Do your contracts provide an excuse in the event you cannot perform?

February 7, 2012
Peter V.K. Funk Jr.
KEYWORDS energy efficient data centers
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n 1956, the Suez Canal was taken over by Egypt. In response, Britain, France, and Israel attacked to protect their interests in the canal. Egypt retaliated by blocking the Suez Canal, which caused an extreme disruption in international trade. In 2012, we are faced with threats by Iran to close the Strait of Hormuz, which provides passage for approximately 20 percent of the world’s oil, in retaliation for sanctions relating to Iran’s nuclear program.

Does your company’s agreements with its customer’s provide an “excuse” for not performing if history repeats itself at the Strait of Hormuz? Or a volcano erupts? Following such events, the bad news may arrive in the form of notices from your energy suppliers variously stating:

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