Between the furniture factory "New Life" and the trade

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Uploaded: 02.11.2019
Content: S19-282.docx 16,33 kB

Product description


Between the furniture factory "New Life" and the trading company "Start", a 5-year contract was concluded for the supply of kitchen sets of furniture and other goods. The range and cost of goods to be supplied were specified by the parties before the start of each year. In August, the furniture factory invited the buyer to agree to a significant increase in prices for all types of delivered goods. In connection with the refusal of the buyer, the plant filed a lawsuit in court regarding the increase in prices for goods on the basis of Art. 451 of the Civil Code of the Russian Federation. In support of the claim, the plant referred to an increase in energy prices by 35% over the past six months and an increase in the cost of wood materials used in furniture production by 30%. Due to the changed circumstances, the execution of the contract without a corresponding increase in the price of goods would cause such damage to the supplier that he would largely lose what he was entitled to rely on when concluding the contract.
What decision should the court make?

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