REVERA successfully defended approximately USD 100,000 owed to an automotive spare parts supplier, preventing the unlawful termination of the contract
A supplier of automotive spare parts faced a refusal by the purchaser to perform a contract in the amount of approximately USD 100,000, alleging that the goods supplied were of inadequate quality. The purchaser unilaterally terminated the contract. The Client risked losing not only the entire amount of the debt, but also the possibility of working with this purchaser in the future.
The disagreement arose due to ambiguity of the contract terms and discrepancies in how the parties interpreted the contractual provision on the quality of the goods. The dispute concerned whether the goods were in fact of inadequate quality and whether the goods supplied had material defects giving the purchaser the right unilaterally to refuse to perform its obligations under the contract.
REVERA’s lawyers prepared a statement of claim seeking a court declaration that the unilateral refusal to perform the contract was unlawful and recovery of the debt under the supply contract. The lawyers demonstrated that the defects in the goods should be classified as lack of completeness rather than lack of quality. The use of a mediation-based approach made it possible to avoid lengthy court proceedings and focus on the prompt recovery by the Client of the amount owed.
Result for the Client: the parties concluded a mediation agreement under which the purchaser paid the Client the principal debt in full, taking into account the costs of completing the goods.
In disputes over the quality of goods, legally accurate classification of the defect and proper interpretation of the contract terms are of decisive importance.
Authors: Aliaksei Fedarovich, Alina Marchyk.
REVERA’s lawyers know how to turn a dispute over termination of a contract into an agreement on payment.
Contact a lawyer for further information
Сontact a lawyer
