Interlegal completed successfully GAFTA Arbitration
Interlegal team completed successfully GAFTA Arbitration upon the dispute caused by partial non-payment of the milling wheat batch, CIF supply.
The Buyer rejected payment allegedly due to poor quality, as compared to contract specifications. To solve the problem, the Parties arranged calculation of discount from the contract price, depending on values shown by re-analysis of the goods at the independent laboratory.
Under the analysis results, final contract price was remitted with the appropriate discount for the Buyer. But the Buyer, in breach of the contract, rejected payment of final balance amount; therefore the Seller initiated arbitration proceedings.
The Buyer stated at the arbitration that the goods, due to poor quality, did not conform to description and acquisition purpose. The Seller emphasized that the Buyer, by means of supplementary agreement, left the contract valid and covered poor quality by discount, having preserved in full the Buyer’s obligation to pay balance amount.
GAFTA Arbitration Court supported the Seller’s position in full.
After the arbitration award entered into legal force, to avoid its recognition and enforcement costs, the Claimant and the Defendant concluded agreement on adjudged sum payment by installments. Interlegal lawyers controlled performance of amicable agreement, while the Seller received the whole sum.
Interlegal lawyer Valeria Ivanova, under the supervision of senior associate Andrey Perepelitsa, represented the Client’s interests at GAFTA arbitration.