Letter to lonpac
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SSM Industries received a letter from Sigma claiming S$503,448.10 under an insurance guarantee due to SSM's alleged failure to fulfill its obligations under a sub-contract. However, SSM argues that Sigma failed to provide any details of the alleged breach or how it caused a loss. As such, SSM takes the position that there is no valid basis for the claim on the insurance guarantee. SSM requests that further particulars be obtained from Sigma before proceeding with any payment under the guarantee.
Letter to lonpac
- 1. Dear Sirs, INSURANCE GUARANTEE NO. Z/10/BP00/032205 (THE INSURANCE GUARANTEE) 1. We refer to your letter dated 28 May 2013. 2. As you are aware, the insurance guarantee was only meant to guarantee our performance of the Sub- Contract and applicable to indemnify Sigma against such loss and damage sustained by Sigma if and when we fail to fulfil any of the terms and conditions of the Sub-Contract. However, in Sigmas letter to you dated 16 May 2013, Sigma has failed to provide any particulars of our alleged failure to fulfil our obligations under the Sub-Contract or how the alleged failure has caused them loss to the tune of S$503,448.10. 3. We take the position that we are not in breach of the Sub-Contract and there is no basis for the call on the insurance guarantee. Moreover, by failing to provide the said particulars, the call on the insurance guarantee is defective. Accordingly, we do not think that you are obliged to make payment to Sigma for any amount of the guarantee, and any payment made in these circumstances will actually be in breach of the terms and conditions of the insurance guarantee. 4. Kindly obtain further particulars of the alleged breach and loss from Sigma before proceeding further on this. 5. All our rights are expressly reserved. Yours faithfully, For and on behalf of SSM Industries Pte Ltd Jeffrey Lee Managing Director