Retail giant sues bus manufacturer for failure to deliver

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By Mary Taruvinga

RETAIL giant Spar has taken bus manufacturer AVM to court over failure to deliver three buses the supermarket chain ordered and paid for last year.

Yellowcob Enterprises (private Limited t/a SPAR is demanding a refund of US$255 000 from AVM Africa (Private) Limited after the later failed to deliver on a deal to suplly three buses.

Spar says it has been prejudiced by the delay after paying in full in December 2018 and is now demanding a refund plus an extra US$60 000.

In summons filed at the High Court, Spar wrote: “The claim is for delivery of new three 28-seater minibuses, model Mistubishi Canter, being the minibuses purchased from the defendant which despite demand the defendant has refused or neglected to deliver or alternatively if specific performance is no longer possible, defendant has refused or neglected to pay US$254 999 or equivalent RTGS dollars at the official exchange rate prevailing at the time.”

In its declaration Spar told the court that on December 2018, it requested for a profoma invoice for three new 28-seater AVM minibuses, model Mitsubishi canter type omnibuses.

Spar then placed an order for the minibuses.

“The agreed purchase price for the minibuses was US$254 999,” read the summons.

The minibuses were supposed to have been delivered by February 15, 2019.

Also, the order specified that the timelines were four weeks for the delivery of first minibus, five weeks for the second one and six weeks for the third bus.

The full purchase price was then paid, and a tax invoice was issued on December 31 December 2019.

Delivery failed as per the agreed date of the 15th of February 2019 and AVM requested for an extension of time which was granted.

However, since then the minibuses have not been delivered to the plaintiff.

“On or about the 23rd May 2019, the defendant started making demands for additional US$20 000 per each minibus. At all material times before the delivery date, there was no indication that the defendant had incurred any additional costs

“ At all material times there was no agreement between the parties that the defendant would be entitled to vary the price at any time or in the event of its failure to complete the manufacturing of the minibuses within the agreed time,” said AVM.

The court heard that despite demand, the defendant has refused or neglected to deliver the minibuses.

Spar is therefore claiming delivery of the minibuses within seven days of the order or alternatively US$254 999.