Legrant protected the interests of a major agro trader in the dispute for 1 million USDMarch 29, 2018 · News
Law firm Legrant protected the interests of it's client, a major foreign agro trader, in a dispute on sale and purchase of agriculture products and ensured the compensation of damages in amount of 1 million US dollars.
Legrant's client concluded several contracts for purchase of corn with a European company on CPT Odessa terms. The contracts were based on GAFTA pro formas and were governed by English law.
Following performance of the contracts, the exporter (Ukrainian company), supplied a part of the cargo to the terminal. However, during the delivery the cargo price has increased, and the exporter demanded an additional payment for products, which had been already sold. Moreover, the exporter refused to perform the customs clearance of the goods, and tried to evacuate the cargo from the terminal. Therefore, neither the seller, nor the buyer were able to finish customs formalities as they were not the residents of Ukraine.
Legrant advised the client on probable risks and actions to be taken, and also drafted a washout agreement between the buyer and the seller. The agreement provided full reimbursement of prepayment to the buyer, and also a compensation of damages in the amount of difference between market and contractual price. The total amount of payment due to the client of Legrant was around 1 million US dollars.