ABSTRACT

Faxed letter from Reliable Installation Co to Respondent dated 3 August 1998

Mr Thomas Oletti Essential Controls, SA 26 Export Pl Southside City Equatoriana Dear Mr Oletti I acknowledge your letter of 28 July 1998 and the enclosed copy of the NOTICE OF ARBITRATION AND STATEMENT OF CLAIM dated 6 July 1998 filed by Superb Paper, Plc against Essential Controls, SA. We acknowledge that, if the question whether our failure to install the control system by 16 September 1996, or any other relevant date, should become an issue in the arbitration between Superb Paper, Plc and Essential Controls, SA, article 14 of the contract dated 7 June 1996 would require us to defend the action on your behalf and we would be bound by the result in respect of any claim Essential Controls, SA might have against Reliable Installation Co. We also acknowledge that we would waive any right we might otherwise have to participate in the creation of the arbitral tribunal. Sincerely, Dr Hubert Schrumpf Reliable Installation Co

1 The Claimant, Superb Paper, Plc, denies that it breached the contract of 10 June 1996 with Essential Controls, SA by avoiding the contract on 9 October 1996. The Respondent admits in paragraph 6 of the Statement of Defense that it estimated that it would take two weeks to complete the installation and testing. In its letter of 18 September 1996 (Claimant’s Exhibit No 4) Claimant gave Respondent until 9 October 1996, that is, three weeks, to complete the job. That was certainly a reasonable amount of time under the circumstances.