Basic facts of the case

In 2006, the Plastic Company signed a Factoring Agreement and a Comprehensive Credit Agreement with the bank for its accounts receivable claims against the Technology Company and notified the Technology Company. The Technology Company remitted part of the accounts receivable to the Plastic Company’s escrow account at the bank. In 2008, the bank sued the Technology Company for repayment of overdue accounts receivable of more than 2 million US dollars and required the Plastic Company to assume additional repayment liability in accordance with the terms of the repurchase factoring. The Technology Company defended itself with the prohibition of transfer clause stipulated in the purchase and sales contract signed between it and the Plastic Company.

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