COVID-19 has decimated supply chains for goods and labour across the world. It is inevitable that many businesses are now facing the same dilemma: what to do when they have enough resources to fulfill some of their contracts, but not all.
What do you do when you have orders for 50 pallets of toilet roll, for ten different customers, but only 25 pallets have been manufactured and delivered? Do you give everyone 2.5 pallets, or give your biggest customer their full 25 pallet order and hope that the other nine customers won’t sue you for breach?
There is no principle of English law that tells you how to make this decision. Rather you will need to conduct a careful balancing act based on your organisation’s specific circumstances. This balancing act will need to consider dimensions of risk, profit, relationships, ethics and the public good.