When drafting a business contract, you usually also set conditions for the delivery. In some cases, the time of delivery may be an important element. Delivering the goods too late can cause damage to your company. Has your order been delivered too late and do you want to recover the damage from the supplier? Our lawyers can assist you to ensure that you still receive what you are entitled to.
Examples of late delivery resulting in damage to the purchaser:
- Building elements delivered too late, causing construction delay
- Christmas products delivered the following January
- A wedding dress delivered after the wedding date
Do you need to send a notice of default?
If goods are not delivered at the agreed time, there is a breach of contract. In most countries, before you can claim compensation, it is important that you give the other party a reasonable chance to still fulfil the agreements from the contract. This is done by means of a notice of default. If your supplier does not respond to this notice of default, then there is an omission. In that case you can demand compensation and possibly terminate the contract with your supplier.
However, if procedures for breach of contract or termination of contract have already been pre-defined in the contract then these will apply. For example, if a fatal period is stipulated whereby goods must be delivered by a specific date, then a notice of default does not need to be sent.
Liquidated Damage Clause in the UK
Do you have a contract with a UK company? If so, has a liquidated damage clause been included? This clause pre-empts the loss if delivery isn’t made and is a genuine pre-estimate of the true loss. If agreed upon, this amount can be charged to the supplier. Should you incur any extra damages, they too can be claimed for however, evidence would need to be provided to prove any considerable changes to that already agreed. If you have included a liquidated damage clause within your UK contract, it is important that you can show evidence that this clause has been negotiated and agreed with your supplier. It cannot just be included without their knowledge and agreement.
Penalty Notices in Europe
For contracts outside of the UK, penalty notices can be included. Do you have a contract with a Turkish, Portuguese or Dutch supplier for example? Has a penalty clause been included? Unlike a liquidated damage clause, a penalty clause does not have to be negotiated. It can simply form part of your contract however, it does need to be reasonable. On top of this, you do not need provide evidence of damage you may have suffered. The clause simply stipulates the amount that needs to be paid should your agreed deadline not be met.
Specialised in solving business conflicts
We have a team of more than 35 lawyers specializing in contract law, both nationally and internationally. They can assist you when contractual agreements regarding the delivery have not been fulfilled.
Advice from a specialist lawyer
Do you have a conflict with your supplier about a delivery? Or would you like to know more about your legal possibilities? Then contact us today. Our lawyers are happy to help you.