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Use case · Legal

Contractual penalties and force majeure in a supply agreement, reviewed

Upload a cross-border supply agreement and review its penalty and force majeure clauses against Polish and Czech law and the CISG, with proposed wording.

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Legal counsel in a dark green dress marking clauses on a printed supply agreement at a table beside coiled wire harnesses

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Czech supplier, framework supply agreement with a Polish buyer under Polish law. Late-delivery penalty of 0.5% per day, capped at 20% of the order. Narrow force majeure clause.
CZ · PL
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Searching Dziennik Ustaw

Searching SAOS

Searching e-Sbírka

The CISG applies unless excluded. A sale of goods between businesses in two contracting states, such as the Czech Republic and Poland, falls under the UN Sales Convention unless the parties exclude it. It governs breach and exemption from liability, but not the validity of a penalty clause, which national law decides.
Polish penalties: no proof of damage, but reducible. Under the Polish Civil Code a contractual penalty is due regardless of the amount of damage, can only secure non-monetary obligations, and can be reduced by a court where the obligation was largely performed or the penalty is grossly excessive.
Responsibility for the delay matters. Polish law generally lets a debtor avoid the penalty by showing the delay was caused by circumstances it is not responsible for. The contract can widen that responsibility, so the wording decides how far a sub-supplier’s strike excuses the supplier.
Force majeure is mostly what the contract says. Neither Polish nor Czech law gives one general definition of force majeure for commercial contracts. The contract’s definition, notice duties and the consequences of a long event carry the weight, alongside the statutory grounds for excusing liability.
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Framework agreement with the Wrocław buyer: penalties and force majeure

Applicable law. The agreement chooses Polish law but does not exclude the CISG, which therefore applies to the sales made under it. Polish law fills the gaps the Convention leaves, including the validity of the penalty clause.

Penalty for delay. Under Polish law the buyer can claim the penalty without proving any loss, and a court may reduce it if it is grossly excessive or the order was largely delivered. Clause 9.2 makes us liable for delay for any reason, which removes the defence that the delay was not our responsibility. We propose deleting those words.

Force majeure. Clause 14 lists natural disasters and war only. We propose adding strikes and failures of sub-suppliers caused by events that would themselves be force majeure, a notice period of five working days, and a right for either party to terminate if the event lasts more than 90 days.

Sources · Dziennik Ustaw · SAOS · e-Sbírka
Saved

A replay of this page’s example. In azta every line of the answer carries a citation that opens the provision itself.

The situation

A framework supply agreement sent by a customer in another country

A Czech maker of wire harnesses in Pardubice has received a framework supply agreement from an assembler in Wrocław. It is governed by Polish law, sets a daily penalty for late delivery capped at 20% of the order value, and defines force majeure narrowly. Purchasing wants to sign by the end of the month.

Counsel knows the Czech position on penalties well. The questions sit on the other side of the border and between the two: whether the penalty can be claimed without any damage, whether a court can reduce it, whether it is owed when a strike at a sub-supplier stops the line, and whether the CISG sits underneath it all.

What the research has to settle

The rules behind the answer

The CISG applies unless excluded
A sale of goods between businesses in two contracting states, such as the Czech Republic and Poland, falls under the UN Sales Convention unless the parties exclude it. It governs breach and exemption from liability, but not the validity of a penalty clause, which national law decides.
Polish penalties: no proof of damage, but reducible
Under the Polish Civil Code a contractual penalty is due regardless of the amount of damage, can only secure non-monetary obligations, and can be reduced by a court where the obligation was largely performed or the penalty is grossly excessive.
Responsibility for the delay matters
Polish law generally lets a debtor avoid the penalty by showing the delay was caused by circumstances it is not responsible for. The contract can widen that responsibility, so the wording decides how far a sub-supplier’s strike excuses the supplier.
Force majeure is mostly what the contract says
Neither Polish nor Czech law gives one general definition of force majeure for commercial contracts. The contract’s definition, notice duties and the consequences of a long event carry the weight, alongside the statutory grounds for excusing liability.

How it runs in azta

From the question to the document

The question, as you would type it

Czech supplier, framework supply agreement with a Polish buyer under Polish law. Late-delivery penalty of 0.5% per day, capped at 20% of the order. Narrow force majeure clause. Does the CISG apply, can the penalty be claimed without damage or reduced, and is a strike at our own sub-supplier an excuse?
  1. You start with

    A framework supply agreement sent by a customer in another country

  2. 01

    Upload the agreement

    Add the draft agreement and the buyer’s general purchasing terms. azta reads them and points to the clauses it relies on.

    File upload· Pro
  3. 02

    Research the clauses under each law

    Ask how the penalty and force majeure clauses work under Polish law and the CISG, and how they would under Czech law. azta cites both civil codes.

    Cited research· Free
  4. 03

    Find the decisions on reducing penalties

    Ask for Polish court decisions on reducing excessive penalties for late delivery. azta summarises the holdings and links each decision.

    Case-law search
  5. 04

    Draft the review

    Ask for a clause-by-clause review with the risk and proposed wording. Edit it in Canvas before it goes to purchasing.

    Canvas · Ask azta· Pro
  6. You send

    A review of the penalty and force majeure clauses with proposed changes

What you get

A review of the penalty and force majeure clauses with proposed changes

Contract review · draft

Framework agreement with the Wrocław buyer: penalties and force majeure

Applicable law. The agreement chooses Polish law but does not exclude the CISG, which therefore applies to the sales made under it. Polish law fills the gaps the Convention leaves, including the validity of the penalty clause.

Penalty for delay. Under Polish law the buyer can claim the penalty without proving any loss, and a court may reduce it if it is grossly excessive or the order was largely delivered. Clause 9.2 makes us liable for delay for any reason, which removes the defence that the delay was not our responsibility. We propose deleting those words.

Force majeure. Clause 14 lists natural disasters and war only. We propose adding strikes and failures of sub-suppliers caused by events that would themselves be force majeure, a notice period of five working days, and a right for either party to terminate if the event lasts more than 90 days.

Illustrative excerpt. A real draft is built from your facts and cites the provisions it relies on.

Outcomes on your numbers

What azta is worth on this task

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Example figures. Replace them with your own.

10%50%
Hours back a year
38
Capacity at your rate
€4,158
More supply agreement reviews a quarter
2.1
Return on Pro
12.8×
Hours a year on this task
Today162 h
Your scenario124 h
  • Research
  • Drafting
  • Your review

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Sources azta searches here

  • Dziennik Ustaw
  • SAOS
  • e-Sbírka
See the full source register

What stays with you

  • The negotiating position and what purchasing will accept.
  • Judging how likely the buyer is to enforce the penalty.
  • The redlines you send.

Frequently asked questions

Does azta hold the CISG?
Conventions are cited from their national publication, such as the Polish journal of laws, together with the decisions that apply them.
Does it redline the agreement?
It drafts the review and proposed wording in Canvas. You carry the changes into the agreement and decide what to send.
Can it compare the clause under Czech law?
Yes. Ask for the same clause under both laws and azta cites each civil code and the decisions it finds.

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  1. 1

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  2. 2

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  3. 3

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