Data
- Date:
- 30-06-2020
- Country:
- Russian Federation
- Number:
- A27-9246/2020
- Court:
- Arbitrazh Court of Kemerovo Region
- Parties:
- JSC Shakhta “Alekseevskaya” and LLC Shakhta “Sibirskaya”
Keywords
SUPPLY CONTRACT – BETWEEN TWO RUSSIAN COMPANIES - REFERENCE TO UNIDROIT PRINCIPLES TO CONFIRM THE SOLUTION ADOPTED UNDER THE APPLICABLE LAW (RUSSIAN LAW)
AGENT ACTING WITHOUT AUTHORITY OR EXCEEDING ITS AUTHORITY - REFERENCE TO UNIDROIT PRINCIPLES (ART. 2.2.5)
RATIFICATION - REFERENCE TO UNIDROIT PRINCIPLES (ART. 2.2.9)
Abstract
The dispute, concerning a coal supply contract, raised questions of authority of seller’s representatives, since the company was in bankruptcy.
In deciding the case, the Court referred not only to the relevant rules of Russian law, but also to Articles 2.2.5 and 2.2.9 of the UNIDROIT Principles 2010, which provide that where the principal’s conduct gives rise to a reasonable belief in authority, the principal is bound, and unauthorized acts may be ratified retroactively. In the Court's opinion, the buyer’s acceptance of deliveries and failure to contest authorization until litigation amounted to implied ratification.
Ultimately, the Court ordered the buyer to pay the debt and statutory interest, confirming the binding force of supply obligations despite seller's bankruptcy.
Abstract in English kindly provided by Roman Zykov
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