Debt Recovery and Prevention of Unlawful Termination of a Supply Contract

REVERA recovered approximately 100,000 USD in debt owed to an auto parts supplier, preventing the unlawful termination of the contract.

The auto parts supplier faced the buyer’s refusal to perform a contract worth about 100,000 USD, claiming that the goods were of poor quality. The buyer unilaterally terminated the contract. The client risked losing not only the entire amount of the debt but also the opportunity to work with this buyer in the future.

The dispute arose due to ambiguous contractual terms and differing interpretations of the provision on product quality. The conflict centered on whether the goods were defective and whether the delivered products actually had significant shortcomings giving the buyer the right to unilaterally withdraw from performance.

REVERA’s lawyers prepared a lawsuit demanding recognition of the buyer’s unilateral refusal as unlawful and seeking recovery of the debt under the supply contract. The team demonstrated that the identified issues should be classified as incomplete delivery rather than poor quality. Using a mediation-based approach helped avoid lengthy litigation and focus on quickly securing payment of the debt for the client.

Result for the Client: the parties executed a mediation agreement under which the buyer paid the principal debt in full, including the costs of completing the goods.

In disputes over product quality, the decisive factor is the correct legal classification of the defect and accurate interpretation of the contract terms. REVERA’s lawyers know how to turn a dispute over contract termination into an agreement on payment.