Company A (Buyer) had entered into a purchase agreement in 2016 with Company B (Supplier) but the agreement was signed by supplier only. As per agreement, it is valid for 10 years from the date of agreement.
Now the buyer has stopped purchasing of final product from supplier in 2023 without any intimation to supplier.
Supplier asked for clarification but buyer is not responding. During the time, supplier suffered heavy loss which supplier is asking from buyer by way compensation claim.
All supply was done by standard procedure i.e. Purchase order, invoice etc.
Particularly purchase agreements must be made in writing and signed by both parties to the agreement to be legitimate and enforceable under the applicable law.
But, the supplier entered into the business with buyer in good faith and on the basis of trust.
Still my question is-
- Can we prove this agreement valid though it is signed by supplier only?
- Any landmark case relevant to the facts which will help to prove this agreement is valid?
