Non-refundable government order // Contractors under terminated government contracts will not receive security payments back

Non-refundable government order // Contractors under terminated government contracts will not receive security payments back

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The Supreme Court (SC) allowed the state customer not to return the entire amount of the security deposit to the contractor if the state contract was terminated due to improper delivery of the goods. At the same time, the Supreme Court did not recognize the supplier as a weak party to the contract, believing that he could “actively and freely” participate in the negotiation of conditions. Lawyers consider the decision “rather severe” in relation to suppliers, believing that the latter may reconsider the expediency of participating in government contracts, and also try to challenge the terms of the contract.

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