We have the case about two companies in different countries that cooperate with each other, where

one company is located in Ukraine and another in Poland.

Ukrainian company – is a company-supplier of certain goods, whereas polish company is goods receiver.

The situation is – in Ukrainian company’s firm happened an accident and it was unable to distribute the
products on time.

Unless there happened a force majeure circumstance, a company should be held responsible for the
delay.

Force majeure circumstance -an unforeseen circumstance that does not depend on decision of
the company or could have been foreseen and eliminated, such as natural calamity or enacting of a new
law by the government.

Yet if it is a force major circumstance and Chamber of Commerce and Industry has proven it, the
company is free not to pay the taxes.

Chamber of Commerce and Industry – is an institution one of functions of which is checking

whether a situation was really a force majeure.

Let’s suppose that our company hasn’t proven that the situation is a force majeure.

So now we deal with the delay in delivery. Ukrainian company is liable to pay penalty tax, pecuniary
punishment, amends. But here is the problem, there is no information arranged amount of money paid
as a pecuniary punishment.

penalty tax – is a determined amount of money that should be paid to the suffered party

pecuniary punishment – is an amount of money paid for the each day of delay, which is
determined in percentage.

amends – is an amount of money paid for the losses of the company.

Because pecuniary punishment is introduced by the government (if it is not arranged) both parties’ lack
of mutual decision does not exclude the necessity to pay the due.

However according to the polish law pecuniary punishment comes up to 7% per annum + inflation index
(art. 481 ССP Interest for Delay in the Fulfillment of Monetary Obligations), whereas in Ukrainian law
pecuniary punishment comes up to 3% per annum + inflation index (art. 625 ССU Liability for Violation
of Financial Obligation).

Unless the problem is solved by both parties coming to the mutual decision, the Ukrainian company may
not be willing to pay a larger due, referring to the Ukrainian law.

So, now, because of the contradiction between Polish and Ukrainian laws concerning this particular
situation, both parties have to appeal to the court that is determined in the contract, or, if it is not, to
the International Court of Justice.