German supplier missed delivery deadlines—can I sue for lost profit and terminate the contract?

Question

I run a small manufacturing business in Germany and our supplier has been late for three consecutive deliveries, causing production stoppages and cancelled customer orders. The supplier says it’s “just delays” and refuses to compensate us. Can I terminate the contract and claim damages for lost profit, and what evidence would I need?

Equity Law House · Accepted Answer

Thanks for the details. To help you understand your legal options under German law, could you please clarify a few points:

Do you have a written contract with the supplier? If so, does it include specific delivery deadlines and penalties for delays?
Have you already given the supplier any formal written warnings or set grace periods for late deliveries (known as "Nachfrist" under German law)?
Do you know whether the delays are due to circumstances beyond their control (e.g., force majeure)?
What is the total value of your losses or cancelled orders so far?

This information will help determine whether you can lawfully terminate the contract and claim damages for lost profits.

German supplier missed delivery deadlines—can I sue for lost profit and terminate the contract?

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