SBG 2277/2015

This case involved a contract where two parties had partnered to provide a service but payments of profits had not been made to one party within the period specified in the contract. There was an issue with late payment by customers. Issues included the validity of various clauses in the contract and what type of contract it actually was.

Background

A claimant said that he had partnered with a defendant in a project to provide housing units with electronic systems and that the term of the contract was six months. However, the defendant had not paid the claimant the profits of the project and therefore the claimant filed the claim to request heo return the capital and to pay the lawyers' fees.

The defendant said that the money paid by the defendant was for a speculation agreement and as such he had to bear the loss and profits.

Decision

The court said that the claimant's requests meant the court had to consider the contract and verify the contractual obligations in terms of mistakes, damages, and the causal relationship between them.