What remedies does Egyptian law offer when a supplier delays delivery under a large commercial contract?
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Alzayat law firm
Remedies for Supplier Delays in Egyptian Commercial Contracts
Under the Egyptian Civil and Commercial Codes, when a supplier delays delivery in a commercial agreement, several remedies are available. The primary options include:
- Specific Performance: A court order compelling the supplier to fulfill the contractual obligation of delivery.
- Damages: Financial compensation for any losses directly resulting from the delay, such as lost profits or costs to source alternative goods.
- Termination: The right to rescind the contract entirely if the delay is substantial and constitutes a fundamental breach of the agreement.
The appropriate forum—litigation in Egyptian courts or arbitration—is determined by the dispute resolution clause within your contract. At ALZAYAT Law Firm, we stress that success hinges on robust evidence, including the contract, purchase orders, correspondence proving the delay, and proof of financial harm. For tailored advice on your specific situation, a professional legal consultation is essential.
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Alraheely Law Firm
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Quorum Law Office
Pursuant to the provisions of the Egyptian Civil Code, as the primary source governing contractual obligations, in addition to the Egyptian Commercial Law, the injured party ("the Buyer") is afforded several legal remedies in the event of the supplier’s delay in delivery. After serving the formal notice of default on the supplier, requiring performance, repeated delays in supplying goods constitute a breach of contractual obligations and entitle the injured party - subject to the terms and conditions of the contract - to seek:
1. Compensation for damages;
2. The delay penalty stipulated under the contract, if any;
3. Specific performance;
4. Termination of the contract where the breach is deemed Substantial, in addition to the application of any agreed penal clause, if applicable.
Recourse to litigation or arbitration shall depend on the dispute resolution clause set out in the contract. No definitive legal opinion or optimal legal strategy can be provided without a detailed review of the disputed contract, especially the provisions concerning the delivery, force majeure, penalties, and termination of the contract.
Quorum Law Firm has wide-ranging experience preparing and advising on major supply and commercial contracts with leading companies in both the local and international markets.
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