Questions & Answers
Is the seller of goods liable toward the buyer when the supplier fails to deliver?
Hi,
We entered a contract as a trading company to supply goods to a client in Europe from the supplier company in Vietnam. Terms of sales were FOB. The supplier in Vietnam did not perform and deliver the goods to the client's forwarder.
We have filed a civil case in Vietnam against the supplier to refund the payment made to them or provide the goods. The amount is USD 800,000.
The end client in Europe is threatening to file a case against us in the UAE even though they are fully aware that we have transferred all funds to the Vietnam company.
Under good faith, we kept them updated but now they are impatient and want to recover the money from us saying their contract is with our company and have nothing to do with the supplier in Vietnam.
My queries:
1. Can we place a defence if a civil case is filed against us.
2. What are our rights to defend?

You have an interesting situation.
We need to review the documents and agreements to give an opinion mainly related to the jurisdiction and applicable laws.
You can email me copies of all relevant documents for an initial review.

Dear Client,
Good day!
This is a breach of trust case.
We can also file a criminal case against the supplier in Vietnam. However, we can defend you on that matter after a criminal case and civil case.
Please provide all the documents of the criminal and civil case that you have filed against the supplier in Vietnam.
Then we can defend you on the case that will be filed or has already been filed by the other party.
For further assistance, please feel free to contact us by phone or send an email.
Thank you.