News: Contract Law
Dow dispute 'shows importance of contract law training'
06 January 2009
The importance of business contract law training has been highlighted by a dispute between the US's largest chemical manufacturer and Kuwait.
Plans to create a $17.4 billion (£11.9 billion) joint venture with Dow Chemical were cancelled by the Gulf emirate in December and the US firm states it will enforce its contractual rights.
Andrew Liveris, Dow's chairman and chief executive officer, describes the company as being "shocked".
He says legal action is not a decision to take lightly and acknowledges his organisation's long-standing relationship with Kuwait.
"[It] is in breach of contract and we must take action to protect the interests of our company and our shareholders," Mr Liveris states.
He asserts over 1,500 documents had been completed for the deal's close and the scheduled creation of K-Dow Petrochemicals on January 2nd.
Kuwait's alleged breach of contract could impact on Dow Chemical's planned acquisition of Rohm and Haas, which was to be partially funded by the arrangement.
