Worked for UAH 10 thousand and almost lost UAH 450 thousand: «the National Bank of Ukraine» sued the developer

A developer from Kryvyi Rih almost «ended up» for UAH 450 thousand: the employer asked the court to terminate the previously concluded contract and recover from him the service fee, penalty and compensation for non-pecuniary damage.

The employer was denied 2 times: first by the Saksahansk District Court of Kryvyi Rih, and then by the Dnipro Court of Appeal.

«National Bank of Ukraine» for barter operations

The parties entered into the agreement on September 18, 2019. According to the terms, the contractor developed an online store platform NBU («People’s Bank of Ukraine») for barter operations and services: «Social project of public organizations for free sale of goods and services to registered users»

The terms of the contract were as follows. Customer:

• selects a website design template;
• provides electronic materials for the website content (logo, description of the company’s activities, price lists, contacts).

Performer:

• connects the management system to the website to fill the site with information and provides the customer with access to it;
• fills the website page with materials provided by the customer;
• connects the domain chosen by the customer to the site and places the site on the Internet;
• registers the website in search engines;
• provides advice on work-related issues;
• eliminates possible errors in the software and program performance;
• at the request of the customer, within 12 months, makes changes to the website design (design) free of charge, changes on an individual order 200 UAH

The cost of works and services under the contract amounted to UAH 10,000 including VAT (pp. 9-11).

Deadlines and unsigned contracts

According to the copies of the defendant’s receipts available in the case file, the latter received from the plaintiff on February 29, 2020, UAH 8,650 for the development of the website and on May 16, 2020, UAH 3,100 for the development of the online barter platform VIP.

In his claim dated July 26, 2020, the customer informed the contractor that the latter had not fulfilled the terms of the contract:

• order fulfillment deadlines are violated;
• the site is not made;
• the trial version of the site is not what was ordered;
• the website operates with a large number of system code errors and offered the contractor a refund of UAH 13,100 (a.p.14).

The contractor said that by September 18, 2020, changes would be made to the website design and technical deficiencies would be eliminated, as stated in writing and in the text of the claim.

It is stated that the developer failed to fulfill its obligations and violated the deadlines, and the parties did not sign the certificate of completion.

The developer ignored the plaintiff’s request for a refund for failure to fulfill the terms of the contract. The developer argued that it had taken all possible measures to fulfill the service agreement.

As a result, the court sided with the IT specialist.

«The court of first instance correctly concluded that the plaintiff failed to prove the violation of its rights and legally protected interests within the disputed legal relations and the absence of a material breach of the contract by the defendant, evidence of damage to the plaintiff and grounds for termination of the contract due to its non-fulfillment. Under such conditions, there are no grounds for returning the money paid by the plaintiff, penalties and non-pecuniary damage to the plaintiff,», — the case file says.