Seller’s interest defense under FOB terms: peculiarities of river transportation and the Buyer’s obligations
The Client, one of leading foreign traders in the Danube region, concluded a commercial contract on agricultural products supply under FOB terms, port of Giurgiulesti.
According to the parties’ agreement, the Seller undertook to supply the goods in full and in proper quality on board the self-propelled vessel with barge convoy nominated by the Buyer, while the Buyer undertook to accept the goods and to pay 100% goods’ value not later than 48 hours upon receipt of the agreed set of documents in copies.
The Seller supplied the goods in full on board of the vessel and served to the Buyer copies of the documents together with the invoice. In addition, for import formalities at the destination port, the Seller, at the Buyer’s request, served to the master of the vessel against his receipt the originals of the certificate of origin and phytosanitary certificate.
The vessel proceeded from Giurgiulesti to the destination port on the Danube river. Meantime, the payment for the goods supplied was not made within the terms set forth in the contract.
The Seller faced an ambiguous situation, i.e. the vessel left the loading port and physical control over the goods was lost, while original bills of lading remained with the Seller and original certificates were served to the Buyer.
Having not received payment in this case, the Seller applied at Interlegal to defend its interests and to receive full payment for the goods. In such cases the main goal is to prevent cargo discharge at the destination port until buyers make full payment for the supplied goods.
In the process of active work upon the case, Interlegal lawyers performed the claim handling and served the respective claims both on the Buyer and the Shipowner. The claims were based on the applicable FOSFA standard terms and rules of cargo transportation under the ‘CONGEBILL’ bill of lading.
Interlegal prompt actions resulted in vessel stoppage at her approach to the destination port, with cargo discharge prevention for more than ten days, i.e. until the Seller has received the full payment for the supplied goods.
Read related articles:
- Interlegal lawyers consulted the client upon applying the instrument of agrarian receipts2020.05.20
The Client – large foreign investment fund filed a request to Interlegal regarding mechanisms upon securing fulfillment of the Debtor’s obli...show more
- Interlegal drafted new combined service agreement on cargo handling2020.05.18
The Client – large Ukrainian sea port operator engaged, in particular, in rendering services of export & import operations, as well as l...show more
- CFC or not CFC: that is the question2020.05.15
The Client applied to Interlegal for legal advice upon legal effects due to entry into force of the draft law No. 1210 “On amendme...show more
- Interlegal lawyers won GAFTA arbitration case in the amount of 200,000 USD2020.05.13
Interlegal succeeded in GAFTA arbitration settlement of the dispute, due to the Buyer’s failure to pay for wheat flour supplied on CFR terms...show more
- Interlegal lawyers consulted the Client and the Bank regarding application of thin capitalization rules2020.05.08
The client filed a request to Interlegal concerning bank issues. A foreign bank maintaining the Client’s corporate account demanded for expl...show more
- Unified social tax late payment: legal effects2020.04.21
The Client applied to Interlegal upon unified social tax erroneous remittance to the account of State Tax Inspection (STI) in the correspond...show more
- Business making under Ukrainian business environment2020.04.09
A foreign client applied to Interlegal for making business in Ukraine. Its request covered the following services: registration of the Ukrai...show more
- Changing the flag for the pleasure yacht2020.04.07
The client applied to Interlegal on changing the flag for the pleasure sailing yacht 30 meters long. The need to change the flag was caus...show more
- Interlegal lawyers charged losses due to vessel non-delivery for loading2020.04.07
Charterer under Voyage Charter Party applied to Interlegal on damage recovery from the Shipowner due to vessel non-delivery for loading....show more
- Reorganization of the foreign company’s representative office2020.04.01
A foreign Client – owner of the group of companies engaged in supply of grains and oilseeds in Black Sea Region – applied to Interlegal. In...show more