Interlegal settled successfully the dispute on late supply of several container batches

The Client, foreign trader, concluded the Contract on grain product supply in container, under CFR terms, Indian port, on the basis of the standard proforma GAFTA 88.

As agreed by the Parties, the Sellers not only undertook to deliver the goods on board of the vessel within the arranged period of shipment in the export country but also guaranteed additionally that the goods will arrive to the destination port till February 25, 2017. Such guarantees, untypical for CFR term, were incorporated into the contract at the principal request of the Buyers due to changes in the customs regulations in the import country.

In the process of the contract performance, the Sellers, due to circumstances out of their control, failed to ship the goods within the shipment period prescribed by the contract which resulted in shifting, inter alia, terms of the goods arrival in India. The Sellers breached the guarantees of goods delivery to the  port of destination till February 25, 2017. The goods were supplied in several batches. Some batches were expected to arrive in March 2017, some in April 2017. Due to such delay the Buyers refused to accept the goods.

In order to defend its interests and to minimize possible financial effects, the Sellers applied to Interlegal.

Due to such prompt application of the Sellers, Interlegal experts prepared a complex legal position based on contract terms and standard provisions GAFTA 88. The several notices were sent to the Buyers, stating the grounds for lawful goods supply upon expiration of the period prescribed by the contract, including by reference to the right on shipment prolongation and force majeure. Under the lead of the Interlegal lawyers was facilitated the collection of the proper set of evidence concerning lawfulness of the Sellers’ claims and the Buyers’ counter-obligation to accept the goods under the contract. As the result of long-term negotiations, the Buyers agreed with the Sellers’ position prepared by Interlegal. The performance of the contract was renewed.

Interlegal senior lawyer Karyna Gorovaya and lawyer Olena Ptashenchuk led the case.