Reference no: EM132902380

Black Panther Corporation had entered a material sales contract with Black Widow Corporation to resell it to Scarlet Witch Corporation. The term of the contract is 15 years, ending on January 31, 2012. The sales contracts were back-to-back contracts. When Black Panther Corporation had given Black Widow Corporation a notice of non-renewal of the contract, Black Widow Corporation gave Scarlet Witch Corporation a notice of non-renewal of the contract as well.

• However, Scarlet Witch Corporation noticed such contract did not specify an expired date, so they submitted a statement of claim with the Thai Arbitration Center and filed a lawsuit with the Civil Court to demand that Black Widow Corporation and Black Panther Corporation comply with the contract by continuing to sell materials to them, If the compliance with the contract could not be performed, the two parties are to be jointly liable for damages.
• Black Widow filed a statement of defense with the Thai Arbitration Center and submitted an answer with the Civil Court. Then, the Civil Court ordered the temporary dismissal of the case, pending the arbitral award. Subsequently, the tribunal rendered the award that Black Widow to make partial payment of damages to Scarlet Witch for 23 million baths on December 20, 2014. However, Black Widow viewed that such arbitral award was erroneous both on factual and legal grounds, so they, by the public prosecutor, filed a motion to set aside the arbitral award with the Civil Court.
• On December 16, 2016, Scarlet Witch Corporation filed a motion to enforce the arbitral award with the Civil Court and Black Widow, by the public prosecutor, filed an objection with the Civil Court. On September 19, 2019, the Civil Court rendered a judgment to enforce the arbitral award. On March 13, 2020, Black Widow filed an appeal with the Supreme Court to appeal the judgment of the Civil Court. At present, the case is under the consideration of the Supreme Court.

Required:

Problem 1: According to IAS 37, please carefully consider the above-mentioned story and determine how should Black Widow deal with this issue in details?