Interlegal justified and facilitated full payment under FOB contract

Interlegal client, a large foreign group of agro-industrial companies, under the tender results concluded a trade contract on agricultural product supply in containers, with one of the leading purchases at the humanitarian supply global market. The contract was concluded on the terms FOB CY the Ukrainian port.

In the course of the contract performance, the client supplied the agreed lot of the goods within the period different from the period of delivery initially set forth in the contract. The Buyers accepted the goods but refused to pay the contractual price in full due to delay in the goods’ supply. The Buyers motivated their actions by the contract provisions, namely the right to recover agreed liquidated damages and the right of set off in case of violating the contractual period of delivery by the Sellers. 10% of the goods value remained unpaid.

The client applied to Interlegal to defend its interests.

Interlegal experts made a complex analysis of the current situation, assessed the factual circumstances of the case which caused a delay, addressed the GAFTA standard terms and the English case law and developed the legal position. The Buyers were served with the motivated claim on full payment of the accepted goods. Claims handling and active negotiations lasted for nearly 3 months.

Processing the request, Interlegal lawyers proved that the Sellers acted strictly in accordance with the Buyers’ instructions, thus the Buyers’ rejection to pay for the duly supplied goods in full is groundless and unlawful. Such active and well grounded actions resulted in the goods’ full payment.

Interlegal lawyer Olena Ptashenchuk under general supervision of the partner Natalya Myroshnychenko led the case.