The Court Upheld the Contractor’s Claim Regarding Breach of Payment Obligation

• 2025-04-18

Our client, a contractor engaged in entrepreneurial activity, had entered into a contract to carry out renovation works in phased stages. The contract established a clear payment mechanism: 30% of the estimated cost for each phase was to be paid in advance, while the remaining balance would be paid upon completion of the phase, as confirmed by the signing of an acceptance act.
According to the acceptance act, from June 1, 2021, to January 10, 2022, the contractor performed renovation works with a total value of AMD 6,554,729. After deducting the AMD 2,050,000 advance payment made by the client, the outstanding amount remained at AMD 4,504,729.
Despite the contractor's efforts to resolve the matter through extrajudicial means, including a formal written notice, the client failed to fulfill their contractual obligations. Consequently, a lawsuit was filed on behalf of our client, seeking both the unpaid amount and the accrued interest on the debt.
Based on the presented evidence and legal arguments, the court fully satisfied the plaintiff’s claim, confirming the breach of contractual obligations and recognizing the contractor’s subjective right to receive the compensation due for the completed work.
The successful outcome of this case once again highlights the professionalism of our experienced legal team in the field of contract law and our efficient approach to resolving disputes related to the enforcement of obligations.

📂 Notice:
The judgment rendered in Civil Case No. ԵԴ/26061/02/22 by the First Instance Court of General Jurisdiction of Yerevan, Republic of Armenia, has entered into legal force.