The same disagreements come up again and again in supply: late delivery, goods that don't match the specification, or overdue payments. In most cases a clearer contract clause would have prevented the dispute.
Six clauses that deserve special care
- Specifications, acceptance and rejection criteria, and inspection.
- Delivery dates and the consequences of delay.
- When responsibility and risk of loss pass to the buyer.
- Payment terms, security and penalties for late payment.
- Force majeure, unforeseen circumstances and their effects.
- How disputes are resolved, from negotiation to arbitration or the courts.
Balance matters
A contract heavily weighted towards one side may look like a win, but it makes disputes more likely and strains the relationship. A clear, balanced contract protects both parties and keeps business flowing.
A clear contract is cheaper than any dispute.
When a disagreement arises
If a disagreement arises, start by reviewing the contract and correspondence and documenting the facts. Acting early and methodically opens the door to a quick settlement, and protects your position if arbitration or litigation becomes necessary.
This article is general information, not legal advice. Every situation is different; contact us for advice on yours.