Brewery contracts intersect with various specific types of agreements which can lead to many different obligations for all the parties involved.
The (Financial) consequences of a brewery contract are different for each party.
The interests of the respective participants are equally diverse. The brewery has to ensure continuous sales. The manager in the catering industry makes important investments at the start of his activity but financial institutions are generally reluctant to extend credit.
It is well advised to seek judicial advice prior to negotiations on such a contract.
There are many different possible alternatives: the simple brewery contract, a commercial lease- and brewery contract or a concession- and brewery contract.
Various judicial aspects may need to be taken into account:
- cession of commercial funds and third party complicity to a breach of contract
- commercial lease
- exclusivity clause (acquisition of liquor)
- minimum obligations
- contractual failure and indemnity
However, as any prudent entrepreneur should know, there are even more potential obstacles.
The impact of the European competition laws on the brewing industry has grown significantly over the past years. The fact that strictly economic factors are considered when assessing the validity of an exclusive acquisition contract is one of many consequences attributable to recent amendments.
Consequentially, this issue requires thorough economical analyses.
Law Office RvB & Partners is your guide to a balanced and fair contract and there is no limit to our dedication when it comes to damage control.