Drafting and negotiating delivery terms for goods—checklist


Published by a ³ÉÈËÓ°Òô Commercial expert
Checklists

Drafting and negotiating delivery terms for goods—checklist


Published by a ³ÉÈËÓ°Òô Commercial expert

Checklists
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This Checklist sets out the key issues relating to the legal concept of delivery in business to business (B2B) contracts and the issues which should be considered when negotiating and drafting contract terms concerning delivery of goods.

What is delivery?

Delivery refers to the voluntary transfer of possession of goods from one person to another, rather than the mere dispatch of goods. Legal significance attaches to delivery entitling the seller to demand payment once delivery has occurred or, alternatively, the absence of delivery may entitle the buyer to claim damages. According to section 27 of the Sale of Goods Act 1979 (SGA 1979), the seller’s basic obligation is to deliver the goods in accordance with the terms of the contract. The parameters of this primary obligation are delineated by the provisions of the SGA 1979.

The point at which delivery takes place is often indicative of when risk passes from the seller to the buyer. Ideally, parties should specify in the contract the manner in which delivery takes place. In this regard, often the contract of sale will

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