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I have a problem with a company that has delivered a service that it considers to be completed, even though it has failed to comply with the contract.

I have evidence to justify these failures and would like to possibly open a dispute for a chargeback as the transaction has been paid by credit card. However, I want to make sure of several things before taking these steps.

The contract is governed by United States law and states the following:

  1. "Sanctions and termination [...] The parties have no right to unilateral termination. This rule is justified by the principle of the binding nature of the contract."

  2. "Jurisdiction [...] All disputes arising out of or in connection with this contract shall be finally settled in accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce without recourse to the ordinary courts by one or more arbitrators appointed in accordance with those rules, whose award shall be binding. The arbitral tribunal shall be the judge of its own jurisdiction and of the validity of the arbitration agreement."

Under these notations, and in the event the chargeback is successful, can the provider then sue me to recover the funds or am I protected by law having won the chargeback proceeding?

For now the service provider scammed us and I want to protect myself in the event that the chargeback is decided on my side be cause I think he would use any means at his disposal to pressure me.

MJD
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jawpotato
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1 Answers1

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They can't sue you because of the arbitration clause. But they can demand to bring the case to an arbitration tribunal. Because in their opinion, they fulfilled their side of the contract but you didn't fulfill yours (paying them for it).

Then, at that tribunal, you can make your arguments. They will argue that they fulfilled the contract. You will argue that they didn't. The arbitrator(s) will then either decide that you were in your right to withhold payment, that you should have paid in full, or that the service provider is at least entitled to a partial payment for partial work.

Which outcome is the most likely? That's a question you should ask a real lawyer, not anonymous strangers on the Internet.

Oh, and because this is arbitration and not a real court case, any legal fees will probably be paid by the parties themselves.

Philipp
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