Preparation of a legal opinion on the consequences of failure to fulfil obligations under contracts in time in the interests of an international logistics operator

The company rented a warehouse to use it for storage and other logistics services for their customers. The storage agreements should have ended two months before the end of the warehouse lease because the Company, as a lessee, was required to return the warehouse in its original condition, and repairs take at least two months. If the Company does not return the warehouse in the agreed condition before the end of the rental period, they shall pay a significant penalty to the lessor. The Company's clients who knew about the expiration of the storage period reported that they would not be able to vacate the warehouse on time; therefore the Company faced significant risks of not being able to complete repairs and return the warehouse to the lessor. Since the Company was interested in minimizing possible losses, they contacted KIAP with a request to analyse the existing legal relations between all parties for their compliance with the requirements of current legislation and assess the legal consequences.      

As part of the execution of the order, KIAP employees prepared a legal opinion, developed a strategy for negotiations with the Company’s clients, and also prepared a draft additional agreement with clients specifying additional liability for failure to vacate the warehouse on time.      

Due to the assistance of KIAP, the Company was able to agree with clients on the procedure for compensating losses in case of violation of the deadlines for vacating the warehouse, which helped them avoid a significant fine and fulfil their obligations to the lessor.


Julia Paushkina,