ABSTRACT

Mr William Spiegel Superb Paper, Plc 123 Industrial Avenue Highlands, Mediterraneo Dear Mr Spiegel I acknowledge your letter of 18 September 1996. This is a difficult situation. The loss of some of their old employees in the plane crash has been difficult for RELIABLE, both in a human way and professionally. I know that RELIABLE has been trying to put a team together to install the control system at your plant. They have had some unexpected difficulties with an installation on which their key personnel are committed. Nevertheless, it is clear that the control system must be installed at your plant promptly. Therefore, I have informed RELIABLE that they must be ready to begin within the next three weeks or we would have to terminate our contract with them. If we have to turn to a different installation firm, it will take an additional several weeks to complete the job. Therefore, I would like to know whether you would be satisfied with an installation that would be completed by 30 October 1996. We would, of course, be ready to make a suitable adjustment on the purchase price to compensate you for your forbearance. I await your reply. Sincerely, Thomas Oletti Essential Controls, SA

Letter from Claimant to Respondent dated 9 October 1996

Mr Thomas Oletti Essential Controls, SA 26 Export Pl Southside City Equatoriana Dear Mr Oletti I refer to my letter of 18 September 1996. In that letter I told you that we expected the control system to be installed and fully operational by 9 October

1996. I also said that if the system was not installed and fully operational by 9 October 1996, Superb Paper, Plc would have to look to its legal rights. The deadline is today. The team from RELIABLE that is supposed to install the control system has still not arrived, and we have not been told when or if they will. Therefore, we are hereby cancelling the contract. We are holding the control system for your account and will return it to you upon your return of the $400,000 we have paid you, which we hereby demand. Sincerely, William Spiegel Superb Paper, Plc

Letter from Respondent to Claimant dated 10 October 1996

Mr William Spiegel Superb Paper, Plc 123 Industrial Avenue Highlands, Mediterraneo Dear Mr Spiegel I refer to the fax of your letter of 9 October 1996 and to our telephone conversation of today. We completely reject your claim that you had a right to cancel the contract. We acknowledge that the installation of the control system has been delayed, for the tragic reasons of which you are well aware. However, the delay has not been unusually long and it will soon be rectified. RELIABLE has finally finished the installation to which I referred in my letter of 19 September 1996. The personnel qualified to do the installation are available to arrive at your facility on Monday, 14 October. We have insisted to RELIABLE that the installation had to be completed by 30 October at the latest, and they have assured me that, if there are no unusual problems, it will be finished by Friday, 25 October. I wish to express my regrets for this unfortunate delay, but I am sure that you will be fully satisfied with the Essential Control System. Sincerely, Thomas Oletti Essential Controls, SA