Dispute settlement with the Buyer from Singapore: over one million USD recovery
29 January, 2025
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The law firm Interlegal has successfully represented the interests of a Seller, a resident of the United Arab Emirates, in a complex dispute arising from the breach of contract by a Singaporean Buyer. The contract involved the supply of 55,000 metric tons (+/-10%) of Ukrainian wheat at a price of USD 269.5 per metric ton, on CFR FO terms, Chattogram, Bangladesh.
Under the contract, the shipment period was stipulated from 10 to 31 March 2024, and the Seller duly fulfilled its obligations by loading the wheat onto the vessel. However, the Buyer breached the contract by failing to make payment within the agreed timeframe.
Due to the payment delay, the Seller exercised its lien over the cargo, resulting in the vessel’s idle time. In July, the parties entered into an addendum that provided for 8 days of free demurrage time, with the buyer to bear all demurrage costs thereafter.
Despite this agreement, discharge operations commenced only in mid-August 2024 and were completed at the end of September 2024, resulting in significant demurrage costs.
Thanks to the efforts of Interlegal’s legal team, a series of constructive negotiations with the Buyer culminated in a settlement agreement. Our team proposed an optimal solution that took into account the interests of both parties. Specifically, the Seller negotiated a 20% discount on the accrued demurrage with the shipowners and additionally granted the Buyer a 10% discount.
After prolonged negotiations, the parties executed a settlement agreement under which the Buyer committed to paying the Seller over USD 1,000,000 in installments by 1 April 2025.
Due to the professionalism of the Interlegal team, the Seller not only effectively safeguarded its rights but also achieved a mutually beneficial resolution of the dispute. If you face similar situations, do not hesitate to contact us. We are always ready to be your reliable partner in resolving complex legal matters.
Interlegal partner Alexey Remeslo and lawyer Larysa Roshu led the case.