Breach of Obligations Under a Supply Agreement

• 2024-09-29

A supply agreement was concluded between the parties, under which the buyer was obligated to pay for each batch of supplied goods within 30 calendar days from the issuance of the invoice.
The agreement also stipulated that if the buyer did not pay the full amount within the specified period, the supplier could charge a penalty of 0.01% of the payable amount for each day of delay.
In accordance with the obligations specified in the agreement, and as of the date the lawsuit was filed with the postal service, the Plaintiff had supplied goods worth a total of 8,773,900 AMD to the Defendant.
The lawsuit included the mutually approved tax invoices and calculations based on those invoices, indicating the existing debt and the interest accrued on it.
Citing Articles 345, 347, 348, 352, and 521 of the Civil Code of the Republic of Armenia, the Plaintiff requested the Court to recover the full amount of the obligation from the Defendant, as well as to calculate and recover the penalty interest of 0.01% per day, as stipulated in Clause 4.1 of the contract, from the date the lawsuit was filed until the actual fulfillment of the obligation.
In accordance with the first part of Article 302 of the Civil Procedure Code of the Republic of Armenia, the Court accepted the Plaintiff’s arguments as valid and sufficient grounds to fully satisfy the claim.

Note: The decision of the General Jurisdiction Civil Court of First Instance of Yerevan in Civil Case No. ED/59679/02/22 has entered into legal force.