Most supply contracts are written assuming everything will go to plan, and their real value shows in the month it does not. Argan oil is an agricultural product tied to a wild tree and to seasons that respond to rainfall. Its contract deserves a clear clause answering a simple question: what happens if supply becomes impossible for a reason neither party controls?
What force majeure means in supply
It is a contractual clause that excuses, or suspends, the liability of a party prevented from performing when an exceptional event occurs that could not reasonably be foreseen or avoided. Its scope depends on the contract wording and the governing law, so have a qualified lawyer review the final text. What follows is a discussion framework, not legal advice.
Why it matters for argan in particular
Argan fruit grows in semi-arid conditions and harvest volume can vary from year to year with rainfall and heat. A raw material shortage is therefore a realistic scenario. The question is whether a weak season counts as force majeure or as ordinary commercial risk carried by the supplier. If the contract is silent, a dispute will answer it later. This clause complements the annual argan oil supply agreement: a fixed volume means little without a rule for when it cannot be met.
Examples of events and typical treatment
| Event | Usually force majeure? | What decides it |
|---|---|---|
| Severe drought sharply cutting the harvest | Depends on wording | Whether drought is named and the reduction threshold |
| Port closure or strike halting shipping | Often included | Duration and alternative routing |
| Government export ban or restriction | Generally yes | Official document |
| Factory equipment failure | Generally no | Whether backup equipment was reasonable |
| Raw material price increase | No, commercial risk | Any price adjustment clause |
Clauses worth writing clearly
- Definition: named events rather than a vague phrase like any circumstance beyond control.
- Notice: a short, defined written deadline.
- Evidence: the documents required, such as an official order or a neutral report.
- Time limit: after how many weeks either party may terminate all or the affected part of the contract.
- Allocation: how limited volume is split between customers, pro rata or by order date.
- Advance payments: refunded or carried to a later order.
- Quality: no specification downgrade as a workaround without your written consent.
Practical steps before signing
- Ask how the supplier handles a weak season in practice: is there a safety stock of oil or kernels?
- Define the minimum volume your brand cannot operate without; it anchors your termination rights.
- Agree the allocation method in advance rather than in the middle of a crisis.
- Link the clause to your fallback plan, including a second argan oil supplier.
- Require any change to volume or dates to be written and signed by both sides.
Common mistakes
- Using a template that lists earthquakes and wars but says nothing about the harvest.
- Leaving the notice period open-ended.
- Protecting only the supplier without clarifying buyer duties such as on-time payment.
- Relying on friendly conversations with no written record.
FAQ
Is drought automatically force majeure?
No. It depends on the contract and governing law. Name it expressly with a measurable threshold if you want it covered.
Can I cancel the whole contract?
Specify how long the event must last before termination is possible and distinguish full from partial termination.
What about the advance I already paid?
The contract should provide for refund or carry-over within a set period, with documented amounts.
Does the clause protect the buyer too?
It can be mutual. Discuss this openly with your supplier.
Summary
A good force majeure clause is rarely triggered, but it decides who bears what when agreement is hardest. To discuss volumes and schedules that suit your brand, see how we work and request a quote stating quantity, duration and specifications.
