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Good morning Sir,

In 2018, we won a contract and received advance payment after procuring Advance Payment Guarantee from a bank. Upon nearing completion and shipment of materials from Australia, the client stopped releasing funds for the project after we turned down requests for bribe from some of her key staff / associate on account of corporate policy. They went as far ignoring the report by the Project Consultant just to achieve their malicious aim and to make good their threat of terminating the project by all means.

  • The client eventually called in the Advance Payment Guarantee in connivance with the bank and received, in full, the advance payment she made for the project, without any notification of breach or termination of the contract, causing our startup substantial financial losses and debts.

Kindly advice how best we can handle this issue.

Thank you.

Best Answer


Thank you for contacting us.

If the client caused you to fail in performance of the contract and then went ahead to call in the advance payment guarantee, then you could sue the client for breach of contract, and also depending on the terms of the advance payment guarantee, if the process for calling in the guarantee was not followed then the bank could also be sued. It would depend on the terms of the supply contract, and also the terms of the advance payment guarantee.

Also if you are successful in your lawsuit against the client you could be able to claim damages for the losses you suffered as a result of their actions.

We hope you have found this information helpful. Please note that this information is provided for general informational purposes only and is not intended to be legal advice. No lawyer-client relationship is formed nor should any such relationship be implied. It is not intended to substitute for the advice of a qualified lawyer. If you require legal advice, please consult with a qualified lawyer.

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