Breach of contract rule: the Ministry of Defence won a court case against a foreign supplier

This is reported by the press service of the Ministry of Defence.

The reason for the dispute was the foreign supplier's violation of the terms of cooperation. It was supposed to supply protective equipment (elbow pads and kneepads) for the defence forces. The supplier violated the delivery terms and volume - only about 11 per cent of the total volume of goods specified in the contract.

The Ministry of Defence, in turn, duly fulfilled its obligations under the contract and paid the cost of the goods in full. The foreign supplier was repeatedly notified of the need to fulfil the terms of the contract as soon as possible, but the goods were not delivered in full," the report says.

Therefore, the ministry filed a claim with the international commercial arbitration in March 2023. The decision of which was in favour of the Ministry of Defence.

The international arbitration awarded to recover from the supplier in favour of the Ministry of Defence more than 2.2 million euros, and also ruled that annual interest continues to accrue daily until the supplier pays its debt to the Ministry of Defence, - added in the ministry.

It is noted that the supplier partially satisfied the claims of the Defence Ministry during the arbitration proceedings.