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Contract

Post by almer on Tue Aug 03, 2010 4:44 pm

A supplier was delayed in the delivery of goods to the procuring entity. Liquidated damages already exceeded 10% of the contract cost. The supplier later managed to deliver the goods and the procuring entity accepted the same. Can the procuring entity still rescind the contract on the grounds of delayed delivery after it has received the goods from the supplier? Thanks....
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Re: Contract

Post by RDV @ GP3i on Tue Aug 03, 2010 6:06 pm

almer wrote:A supplier was delayed in the delivery of goods to the procuring entity. Liquidated damages already exceeded 10% of the contract cost. The supplier later managed to deliver the goods and the procuring entity accepted the same. Can the procuring entity still rescind the contract on the grounds of delayed delivery after it has received the goods from the supplier? Thanks....

The maximum amount of liquidated damages (LD) is only up to 10% of the contract price. In other words LD should not exceed that much. When LD reaches 10% of the contract price, automatically the procuring entity should rescind the contract. However, if the procuring entity did not rescind the contract but instead received the delayed delivery, I believe the procuring entity is already in estoppel, meaning it could no longer rescind the contract after accepting the delayed delivery.
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Contract

Post by almer on Wed Aug 04, 2010 10:07 am

Thanks so much Sir!!!!! Very Happy
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Re: Contract

Post by 1974jamescastillo on Tue Nov 08, 2011 4:51 pm

sir,
how about if before the delivery, the agency and the supplier of goods agreed to change the specifications, such as the length of the items but with no additional cost. however the quantity was decreased based on the length of the new item. Is there a need for rebidding or an amendment to contract? what are the requirements? thanks...

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Re: Contract

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