Recent Disruptions to the Law of Requirements Contracts and Supply Chains

Amid increasing pressure on supply chains across the globe, multiple recent court opinions have disrupted the law of requirements contracts - contracts regularly relied upon across industries by many original equipment manufacturers and suppliers. In July 2023, the Michigan Supreme Court in MSSC, Inc. v. Airboss Flexible Prods. Co. (“Airboss”) scrutinized whether certain contracts intending to be requirements contracts comply with the Statute of Frauds.
Now, over one year later, the state of the law of requirements contracts remain in flux. This article will analyze the Airboss decision and its progeny and then analyze what comes next for requirements contracts.
Author: Vanessa Miller
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#supplychain #contracts #manufacturing #airboss