I had an exclusive contract with an Italian firm, for representing them and selling their products in my country. payment clasue was by letter of credit at 60 days from b/l date which was transferred to payment against invoice date after 90 days without L/C. For some reasons, I had a delay in the payment to the Principals which was finally paid in full amount with their implemented due interest fixed by them , and fully paid . As soon as they received the payment with it's implemented interest they sent us a termination letter of the contract based on delay payment, which never was stated in the contract clauses " termination of contract " as stated below Termination : This agreement shall be automatically terminated in case of :- 1- Unreasonable breach of the minimum purchase volume 2- Promotion of competing equivalent products in the area 3- Material modification structure and.or management and financial situation 4- Insolvency and/or bankruptcy None of the above were done/or happend. Do they have the right to terminate the agreement What claim can we place Thanks Best regds
System of Law: EU
Just tried for over 3 months to explain their unjustified decision of termination , but no success
Thank you for your inquire.
I am an Italian attorney and I am more than honoured of helping you with my legal advice.
Article 1218 of Italian civil code (Codice civile) states the liability of the executor of the obligation in the case of inaccurate and/or belated execution.
Nonetheless, this provision does not state anything about the right of the other contractor to terminate the agreement. It just provides the right to ask for compensation if the executor is not able to prove that the inaccurate and/or belated execution did not depend on his choice.
As a consequence, the possibility to terminate the contract is fully provided by the agreement clauses. From what you mention, I infer that there is no such a clause that states the possibility for the other contractor to terminate the contract to your belated execution. Especially if you have also paid for the interests.
For this reason, you should have the right to ask them for compensation (they are not executing their obligation under the contract on the basis of article 1218) AND to be repositioned in your former position of contractor.
To do so, I suggest you to contact a lawyer that can best take care of your rights.
He/she would be able to bring a default action by sending a letter (lettera di messa in mora) to claim for their duties towards you.
I hope this answers your question. If it does, please do not hesitate to RATE and ACCEPT my answer so that I can be compensated for my job with the amount you have already deposited.
I remain at your complete disposal should you need any further information.
Solicitor - Ph.D. Doctor Europaeus in EU law
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