Interlegal experts defended the exporter’s interests in the dispute with the buyer upon non-payment under CAD terms
The Client, one of the leading foreign traders operating in Ukraine concluded a trade contract on grain to be supplied under FOB terms port of Ukraine. The contract was based on the standard proforma GAFTA 49.
As agreed by the Parties, the Seller undertook to supply the goods on board the Vessel nominated by the Buyer, in full and in proper quality. The Buyer, in its turn, undertook to accept the goods and to pay their 100% value within 48 hours upon receipt of the agreed set of original documents by the Buyer’s Bank (cash against documents payment – CAD).
According to the terms of the contract, the Seller supplied the goods on board the arrived Vessel within the delivery period. The goods were cleared for export. The agreed surveys were arranged. The appropriate certificates and Bills of Lading were issued. The Vessel’s departure was confirmed. The Vessel left the port and sailed to the port of discharge.
After the Vessel’s departure, the agreed set of original documents and the invoice in total amount exceeding 1,000,000 USD were submitted to the Buyers’ Bank. The Bank accepted the documents without any remarks but payment was not made within the term provided by the contract.
Having lost control over the goods and submitted all the original documents to the Bank, the Sellers filed a request to Interlegal in order to defend their interests and to minimize any risks related to possible non-payment by the Buyers for the goods supplied.
Interlegal experts performed the necessary scope of claim activities quickly and efficiently. Prompt actions resulted in full payment of the supplied goods.
«I would like to express gratitude on behalf of our company for your hard work. You made an enormous contribution in settlement of this issue.
Thank you for your assistance and cooperation! We will be glad to keep further cooperation with you».