An agreement is executed between two companies S & P.
S is supplier and P is the purchaser. Agreement provides that Supplier should supply minimum 500 tonnes of material every month to Purchaser and if Supplier fails to supply minimum quantity to Purchaser in any month, Supplier will have to pay Purchaser the amount which is the actual price for short supplied material.
There is also a clause of arbitration.
Now, for one month, Supplier fails to supply any material. i.e. it is a breach by supplier and Purchaser is entitled to get amount for the 500 tonnes material.
1. What is the legal course available to Purchaser.?
2. should purchaser send a demand notice?
3. If demand notice is unanswered or gets a vague reply what will be next step?
pls guide.
regards
abhijit
