The dispute between BGI and Purpose Black regarding the terminated building sale agreement may end up in court.

The breach of contract between BGI and Purpose Black is one of the most significant business tales that has been making the rounds recently.

Eight months ago, Dr. Fisha Eshetu, the owner of Purpose Black and the founder of Unity University, told the media that his company had reached a deal with a major beer brewery, BGI, to buy the brewery’s headquarters in Mexico Square for 1.15 billion birr down payment. He continued by saying that his business will construct flats that would be offered for sale to prospective homeowners.

After the announcement, Purpose Black started selling shares to purchasers who had to own a property close to the BGI offices.

But last Monday, eight months into the first agreement, BGI announced that it was ending it, citing Black Purpose’s unwillingness to pay the outstanding amount.

After BGI made their announcement on Monday, Black Purpose called the local media to assert that BGI’s termination of the collaboration was a massive lie that went beyond their agreement.

It also threatened to sue BGI for not adhering to the mutual understanding that the two parties had established.

What was said by Ermias Berhanu, Purpose Black’s legal advisor?

We asked BGI to sign a contract with us, but they refused.

Things went wrong when BGI sold the plant site because it neglected to file the requisite documentation and pay the capital gain tax that the government demanded.

BGI received a payment of one billion and fifty million birr. Once the proof and contract are received, we are ready to make the last payment.

We will give the house to the stockholders in compliance with the conditions of our agreement. You shouldn’t worry about this because we’ve taken over other locations.

What was said by Ermias Berhanu, Purpose Black’s legal advisor?

We asked BGI to sign a contract with us, but they refused.

Things went wrong when BGI sold the plant site because it neglected to file the requisite documentation and pay the capital gain tax that the government demanded.

BGI received a payment of one billion and fifty million birr. Once the proof and contract are received, we are ready to make the last payment.

We will give the house to the stockholders in compliance with the conditions of our agreement. You shouldn’t worry about this because we’ve taken over other locations.

We are willing to contribute $2,5 billion to the BGI’s second round. If BGI finishes the required documentation

The sales contract was annulled, according to BGI, since Purpose Black was unable to provide any proof of its ability to complete the purchase.

The eight-month-old head office sales contract between Purpose Black Ethiopia and BGI was recently terminated without permission.

BGI has made it clear that their request for renegotiation was turned down. According to BGI, there was a discernible delay in the time required to complete the transaction and close the selling agreement.

A few days ago, the deal with BGI was unexpectedly terminated for no apparent reason.

Director of BGI Ethiopia’s legal department Nega Mehrete said that although Purpose Black brought new and incompatible concepts to the organisation, it was unable to put them into practice. This was in contrary to the agreement struck by the parties.

Purpose Black was accused by BGI of illegally extending the process, which allowed them to dissolve the agreement because the six major projects that BGI is now working on will cost a lot of money.

BGI announced that it will reopen the building’s bid process.

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