Wash out regarding export of agricultural products from Ukraine
In the light of volatility of the international agricultural market, the Ukrainian exporters and their foreign counteragents face more often failure of scheduled supplies caused by unfair actions committed by third persons – final consignees.
The client, one of large foreign traders in Ukraine, filed the relevant request to Interlegal. Aiming to settle amicably the issue of failure to supply goods, the parties decided to cancel their contractual relationship by mutual consent, i.e. by means of Wash out Agreement. The goods were planned to be supplied under FOB terms ports of Ukraine. Total contractual amount exceeded 2,000,000 US dollars.
Prompt application to Interlegal experts, operative drafting and signing of the appropriate agreement resulted in avoiding additional expenses. Wash out of the declared export deal provided repayment of the contract by the buyers, who failed to fulfill their obligations to accept the goods within the prescribed delivery period.
Wash out Agreement drafted by Interlegal stipulated terms of amicable settlement of the issue between the parties, special conditions for release from liability under the main contract as well as guarantees of performance of obligations to pay the agreed difference in goods’ price.