Problem: Client has engaged a broker to sell goods on a commodity exchange. Client applied to the broker to participate in tender with commodity it had in stock. Client did not win the tender because the broker had violated his contractual obligations. Client informed the commodity exchange and the purchasing customer about the broker’s violation, proposing to change the procedure for purchase, because in the current situation the client could not offer the goods and the customer could not buy them at a better price. Broker went to court to protect his business reputation, demanding the letters be withdrawn.
Actions in court: The barrister proved the broker’s violations. It was proven in court that the broker illegally limited the time for accepting new quotations before tender, did not ensure the client’s participation in tender, and only submitted the quotation of the supplier who had offered the lowest price among others before tender started.
Result: The court rejected the broker, by refusing to obligate the client to withdraw the letters on the broker’s violation. The broker’s violation of contractual obligations was recognized, client was entitled to demand change in brokers’ practices on commodity exchange.
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