What remedies does Egyptian law offer when a supplier delays delivery under a large commercial contract?
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Alzayat law firm
Remedies for Supplier Delays in Egyptian Commercial Contracts
Under the Egyptian Civil and Commercial Codes, when a supplier delays delivery in a commercial agreement, several remedies are available. The primary options include:
- Specific Performance: A court order compelling the supplier to fulfill the contractual obligation of delivery.
- Damages: Financial compensation for any losses directly resulting from the delay, such as lost profits or costs to source alternative goods.
- Termination: The right to rescind the contract entirely if the delay is substantial and constitutes a fundamental breach of the agreement.
The appropriate forum—litigation in Egyptian courts or arbitration—is determined by the dispute resolution clause within your contract. At ALZAYAT Law Firm, we stress that success hinges on robust evidence, including the contract, purchase orders, correspondence proving the delay, and proof of financial harm. For tailored advice on your specific situation, a professional legal consultation is essential.
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Alraheely Law Firm
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Alraheely Law Firm
Quorum Law Office
Pursuant to the provisions of the Egyptian Civil Code, as the primary source governing contractual obligations, in addition to the Egyptian Commercial Law, the injured party ("the Buyer") is afforded several legal remedies in the event of the supplier’s delay in delivery. After serving the formal notice of default on the supplier, requiring performance, repeated delays in supplying goods constitute a breach of contractual obligations and entitle the injured party - subject to the terms and conditions of the contract - to seek:
1. Compensation for damages;
2. The delay penalty stipulated under the contract, if any;
3. Specific performance;
4. Termination of the contract where the breach is deemed Substantial, in addition to the application of any agreed penal clause, if applicable.
Recourse to litigation or arbitration shall depend on the dispute resolution clause set out in the contract. No definitive legal opinion or optimal legal strategy can be provided without a detailed review of the disputed contract, especially the provisions concerning the delivery, force majeure, penalties, and termination of the contract.
Quorum Law Firm has wide-ranging experience preparing and advising on major supply and commercial contracts with leading companies in both the local and international markets.
Nexus & Charter Law Firm
Ragy & Partners Law Firm - Attorneys & Counselors At Law LLP
Under Egyptian law, repeated delays in supply may entitle you to contractual and statutory remedies, including damages for actual loss and loss of profit, specific performance where the obligation is still feasible, and in urgent cases interim or summary relief to stop ongoing harm. The availability of each remedy depends heavily on the contract wording (penalty clauses, force-majeure, termination rights, dispute-resolution clause) and the nature and impact of the delays. Whether you should proceed before the courts or arbitration is not a strategic choice you get to freestyle. It is dictated first and foremost by the dispute-resolution clause in the contract, and second by enforceability, speed, and cost considerations. In all cases, success turns on evidence such as delivery schedules, correspondence, notices of default, commercial impact, and proof of damages, and timelines can range from months to several years depending on forum and complexity. In practice, local counsel is not optional in Egypt. It is essential.
This is exactly the kind of matter that benefits from early, structured legal assessment before positions harden and leverage is lost. Ragy & Partners Law Firm – Attorneys & Counselors at Law LLP (RPLF) would be pleased to review your contract and the factual background on a confidential basis and advise you on the most effective and commercially sound course of action.
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