State forestry performs contract terms

Actions of state companies: Other actions Zhytomyr region

Complainee: SE “Slovechanskyi Forestry”
Complaint in brief: The Business Ombudsman Council received a complaint from a private entrepreneur engaged in wooden structures production. The businessman won the tender for the purchase of wood. Accordingly, the complainant entered into a purchase contract of unprocessed timber with the forestry in Zhytomyr Oblast. However, the seller refused to perform its contractual obligations. Despite the agreed volume of deliveries of 330 cubic meters, the forestry delivered only 216 cubic meters of wood to the complainant. Meanwhile, companies that had won fewer lots received their deliveries in full. The private entrepreneur appealed to the forestry with complaints twice, but to no avail. At this point, the BOC investigator got down to investigation.
Actions taken: Having examined the circumstances of the complaint, the Council found the complaint substantiated. The investigator found out that under the terms of sales contract between the complainant and the seller, the forestry had to supply 330 cubic meters of wood within five working days from the date of payment receipt. Moreover, the contract provided that the entrepreneur made a 100% prepayment to the seller’s account, then the forestry had to send the entrepreneur a shipment notice. However, the complainant did not receive any payment receipts or notifications of readiness. The BOC appealed to the State Enterprise “Slovechanskyi Forestry” and the State Forest Resources Agency of Ukraine being the founder of the forestry, and asked the seller to fulfill his contractual obligations under the contract. The Council’s investigator also reminded that the refusal of the forestry to fully fulfill contractual obligations was a civil economy requirements violation, for which the seller may be subject to sanctions.
Result achieved: Due to mediation of the BOC, the forestry supplied the rest of timber to the private entrepreneur. The case was successfully closed.

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