After three months of negotiations, the counterparty agreed to compensate for almost half a million EUR damage

Our client, a company acting in the agricultural industry, concluded several Urea and Ammonium Nitrate (UAN) fertilizers sale-purchase agreements with the counterparty under which the counterparty had to deliver around 5000 tones of the UAN fertilizers to the client under the prices prescribed in the contracts. However, after the prices for UAN sky rocked, the counterparty decided not to perform the contracts.

Our Dispute Resolution team prepared a further strategy for the client on how to deal step-by-step with the problem and drafted all necessary contract termination notices and claims. Following our detailed strategy, the client terminated the contracts due to their fundamental breach and demanded that the counterparty compensates for the non-delivered UAN fertilizers’ price difference.

Then we had lengthy negotiations, where over 20 meetings took place with the counterparty’s counsel and many drafts Settlement agreement were circulated. After lengthy and complex negotiations the counterparty agreed to compensate almost half a million EUR to the client and settle the dispute by the out-of-court settlement agreement.