Contractual Interest on Defective Goods and Damages Calculation
Article 5 specifies a price of 500,000 baht per unit, purchased from Samai D Engineering Co., Ltd. This purchase was governed by a contract. If the seller failed to deliver the goods as detailed in the contract s annex by January 1, 1981, the remaining unpaid amount would accrue interest at a rate of 0.2% per day until full delivery and acceptance. On January 1, 1981, the seller delivered one excavator. However, the tires for that excavator, specifically numbers 3 and 3, were incorrect, amounting to 60,000 baht as outlined in the contract s annex. The buyer s inspector notified the seller to provide a replacement. On January 12, 1981, the seller delivered new tires along with the remaining two excavators. The inspector examined the tires and vehicles and determined they were correct. The inspector reserved the right to claim liquidated damages. Specifically, the inspector advised whether the buyer was entitled to claim liquidated damages from the seller at a rate of 0.2% of the price of the five excavators from January 2, 1981, to January 12, 1981. Despite the seller s delivery of one excavator within the contract deadline, the buyer was still unable to accept the vehicle for its intended use. The buyer calculated damages based on the price of the entire excavator fleet, not just the tires.