Interlegal has successfully defended the Client’s interests upon selling sunflower oil to Iran
Interlegal has successfully defended the Client’s interests upon selling sunflower oil to Iran (CIF), by means of forcing the Buyer to perform its contractual obligations and to compensate damages.
The Client faced such situation when the vessel was two days away from the discharge port and the Buyer violated its contractual obligations, having paid only 10% of the cost of supplied goods. The Ship Owner insisted on quick discharge.
Having analyzed operatively the contract and the potential risks, the Seller was recommended to order the Vessel not to cross territorial waters until 100% payment of the contractual cost of goods is received. The Buyer was duly notified thereon and the Ship Owner received guarantees of demurrage compensation.
First, the Buyer refused to pay the supplied goods till the Vessel submitted Notice of Readiness at the discharge port, then it submitted the SWIFT for residual cost of goods. But the analysis of general situation and risk factors resulted in recommendation not to cross territorial waters till the confirmation of cost remittance to the Seller’s account is received.
As the result, the Buyer had to remit allegedly once more the residual amount (90%) to the Seller (the initial amount has not been remitted to the Seller’s account) and to compensate the Seller’s additional expenses and losses.
Dmitriy Zagorodnyuk, senior lawyer of Interlegal, proceeded the case.