The customer came to us several weeks after receiving a warning and signing the declaration of negligence (Unterlassungserklärung). The reason for this was informing (in the description of one of the offered products on eBay) about the guarantee without statutory required information about the terms of this guarantee.
When Mr. Papadopoulos contacted us, the admonishing party imposed a fine of € 5,000 on him for re-informing the customer about the warranty. Since he had signed the declaration that he would not make that mistake again (but he did so by negligence), the other party had the full right to impose a contractual penalty for non-compliance with the provisions of the declaration of negligence.
When the customer came to us, only a few days remained until the deadline for the payment of the contractual penalty for the ultimatum. We acted immediately and after presenting the client with our offer, we have concluded a cooperation agreement as part of our popular legal protection subscription.
Within a few hours our team collected full documentation. After briefing with lawyers, we have prepared a strategy to reduce financial and legal consequences.
The other party invoked an auction that did not show any sales for a year. This issue significantly reduced the weight of the opposing party’s argument about the alleged damage caused by Mr Papadopoulos to its competitors.
Another argument was the presentation of financial results, which due to the seasonality of the product and the holiday period were worthless. It was not difficult to prove that Mr Papadopoulos did not have any revenue from the auction, which contained a legal error.
Negotiations resulted in the opponent being forced to reduce the contractual penalty from €5,000 to €1,000. In addition, the other party agreed to repay the contractual penalty in installments.