In October 2024, Singaporean buyer purchased steel products from Chinese seller under an international sales contract. After making the agreed payment for 300,000 USD, the seller accused the buyer of delayed payment and demanded excessive storage fees for undelivered goods. The buyer disputed the validity of these claims, arguing that the seller failed to meet contractual obligations and lacked legal grounds to impose unilateral charges. When negotiations stalled, the buyer entrusted our law firm to resolve the case.
We took multi-pronged approach to secure a favorable outcome. First, we conducted a rigorous review of the contract terms, identifying ambiguities in the payment timeline and non-existing of storage fee clauses. We took procedural tactics, including issuing a formal legal notice outlining the buyer’s rights under the United Nations Convention on Contracts for the International Sale of Goods (CISG) and threatening arbitration. This pressure prompted the seller to reconsider its stance. Through persistent mediation and evidence-based arguments, we achieved a swift resolution for pushing the supplier to deliver the goods without any charges.
This case underscores the application of CISG principles, which govern cross-border sales contracts. Under CISG, buyers are obligated to pay the agreed price, while sellers must deliver goods conforming to contractual terms. However, unilateral charges like storage fees require explicit contractual authorization or proof of actual losses. Our success hinged on demonstrating that the seller’s demands lacked contractual or factual basis.
