Is it possible to sue a supplier for breach after they stopped delivering under a long-term agreement?

Breach of Contract Claim Viability: Yes, it is possible to sue a supplier for breach after they stopped delivering under a long-term agreement. When a supplier completely stops supplying agreed stock two months into a long-term contract, this typically constitutes a material or repudiatory breach.

Force Majeure Defense: The supplier's force majeure claim requires careful scrutiny. For this defense to succeed, they must prove: The contract contains a specific force majeure clause; The event was beyond their control and not due to negligence; The event was unforeseeable when the contract was formed. Courts enforce force majeure clauses strictly according to their plain language, and the specific events that excuse performance must typically be listed in the contract.

Recoverable Damages: Potential damages include compensatory damages for actual losses suffered, which may cover direct costs and potentially lost profits, depending on contract terms and jurisdiction. However, many contracts contain limitation of liability clauses that may restrict recoverable damages.

Arbitration vs. Litigation: The choice depends on what the contract specifies - many supply agreements include mandatory arbitration clauses. Arbitration awards may be more widely enforceable internationally than court judgments.