Case studies

At INOV Broker, we protect professionals in their relations with suppliers

The problem

After more than 10 years, the policy-holder, who has a professional legal protection policy, ordered some spare parts from his supplier>. There had never been a written contract between them as the only written documents between them were the purchase orders establishing the delivery dates and payment deadlines.

The entire parts order came in 4 different deliveries and standard business custom is to grant the policy-holder some flexibility as far as delivery and payment terms. In fact, a postponement had been accepted by the supplier.

Yet, an order was delivered all at once with an obligation for the policy-holder to pay the full invoice. He could not make this payment.

Our policy-holder nonetheless ordered some parts from his supplier again. This order was approved but the supplier refused to deliver following the payment delay for the preceding delivery. Without these parts, the policy-holder could not continue his production.

Problem: the policy-holder wanted to continue working with his supplier in the same conditions all while questioning the refusal to deliver.

INOV Broker’s response

The challenge was to re-initiate the conversation and re-establish good commercial relations.

Thus, there were several conversations between the legal advisor responsible for the case, the policy-holder and his supplier in order to better understand the situation. It turned out that the supplier also wanted to continue working with our policy-holder but wanted to go back to the sales conditions initially established following several issues with delivery and payment deadlines.

The legal advisor responsible for the case took on the position of the third party with the policy-holder to get his remarks concerning the alleged abuses.

With the information gathered from the policy-holder, the legal advisor prepared a certified letter for the third party requesting the delivery and payment history in order to prove the lack of the abuse invoked by the latter and asking him to continue the contractual relationship by going through with the delivery.

The letter was submitted to the policy-holder for approval before being sent in an effort to preserve their commercial relations.

Results

After receiving the letter, the supplier completed the delivery and commercial relations were re-established.

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