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SPCG has won for Tesco Polska a dispute before the Court of Appeal in Wrocław concerning the admissibility and effects of the parties’ conclusion of an agreement on the negative recognition of debt.
SPCG represented Tesco Polska chain in a dispute with a former supplier, who claimed the payment of amounts due under the agreement concluded by the parties. The law firm, on behalf of Tesco Polska, has indicated however that a claim asserted in the lawsuit was unfounded because the parties have concluded a mutual agreement on the negative recognition of debt, which resulted in the expiry of the claim asserted in the lawsuit by the supplier. The agreement was concluded upon the parties’ signing of the commercial terms for the next year of collaboration and its aim was to fully settle parties’ existing collaboration and to eliminate the state of uncertainty as to possible mutual settlements of the parties. The supplier in turn alleged that such agreement was not effective because it did not specify the claims being the subject of debt release and as at the date of conclusion thereof the parties did not know whether they were entitled to any claim and what was the amount thereof.

The Court of First Instance and the Court of Appeal in Wroclaw have fully shared the arguments of Tesco Polska and indicated that under the Polish law it is acceptable to conclude a contract, in which the creditor recognises the non-existence of the debtor’s debt. The negative recognition is made in situations where parties are uncertain whether one of them still has a debt and in what amount. The essence of the agreement on negative recognition is the consistent statement of will of the parties as to the expiry of the possible duty to perform of the debtor under the contractual relationship. The creditor’s statement made in such circumstances is binding on him, thus it shapes his position definitively. In consequence, the supplier’s claim asserted in the lawsuit was fully dismissed. The claimant’s appeal against the judgment of the Court of First Instance favourable for the retail chain was also dismissed.

Tesco Polska was represented by SPCG Partner Jakub Górski PhD, Senior Associate Paweł Węc and Associate Paweł Łękawski.