Interlegal lawyers drafted the Settlement Agreement due to breach of the Supply Contract by the Counteragent

The Client, large Ukrainian elevator, filed a request to Interlegal on drafting the Settlement Agreement due to breach of the Supply Contract by the Supplier – Spanish enterprise engaged in design, manufacturing and assembling industrial equipment and bulk product processing and storage systems.

Under the Contract, the Supplier undertook to supply equipment for the elevator in batches, within the term agreed by the Parties. Payment for equipment provided three installments: advance payment, payment against documents and final payment at the Supplier’s request.

When the Client applied to Interlegal, late and short delivery occurred. The Client duly fulfilled its obligations, while overpayment for partially delivered equipment exceeded 145,000.00 Euros.

The Client tried to settle amicably the dispute by means of negotiations, but the Supplier in reply only made promises and proposed new supply terms.

There were restrictions both in settlement term and in equipment supply term, with regards to scheduled date of the elevator launch. Under the Contract, the Client had no right to terminate it unilaterally due to breach of the Supplier’s contractual obligations.
Interlegal lawyers, based on complex analysis of case and documents, drafted the Settlement Agreement which prescribed regulations defending the Client’s rights, previously omitted in the Supply Contract. In case of breach of the Supplier’s obligations under the Settlement Agreement (i.e. equipment supply within the prescribed term) the Client is entitled to terminate the Contract unilaterally, with an option to conclude the new Contract with another supplier and to launch the elevator in due time. 

At the present stage, both Parties have signed the Settlement Agreement and duly fulfill their obligations.

Interlegal lawyer Irina Yakimovskaya, managed by associate attorney Ellina Romanova, led the case.