AVELLUM represented the client in GAFTA appeal
The GAFTA Board of Appeal satisfied in full the client’s claim of approximately USD 150,000 seeking compensation for damages specified in a washout agreement that were caused by the failure to comply with the contract. A washout agreement is a settlement agreement by which a party seeks to terminate the contract, without declaring a default, with compensation paid by the party who refuses to fulfil the contract. Typically, the compensation is the difference between the contractual price of the goods and the market price of the goods on the day of such a refusal.
The AVELLUM team successfully proved that the parties had actually agreed the washout agreement verbally through the broker. Furthermore, arbitrators confirmed the general position of English law that any person who represents a company may enter into a contract, regardless of his or her position in the company and the existence of formal labour relations.
The AVELLUM team was led by partner Iryna Moroz with support of senior associate Dmytro Koval.