Circular Supply Chains – identifying and allocating legal risks (CirCus)

A transition to a circular economy has become an important policy goal. CirCus analyses the extent to which the concept of circularity affects the legal distribution of risks in the supply chains and whether circular supply chains call for new liability standards and new collaborative contract models.   

Liability standards and contracts are fundamental building blocks for the distribution of risks in supply chains. However, current liability and contract law reflect in their most basic principles not a circular, but a linear reality. In a circular contract law, courts will be challenged when applying basic quality and product safety concepts as ‘fitness for purpose’ and ‘legitimate expectations’ because of the multipurpose nature of the products on the market. Finally, the idea of the circular supply chain challenges the most basic understanding in contract and liability law of clearly separated risks spheres between the parties as long term collaboration and transparency between the parties will increasingly become necessary in order to understand the needs of the entire chain. CirCus focuses on the described challenges in three case studies.