Delivery: Overview, definition and example
What is delivery?
Delivery refers to the transfer or handover of goods, services, or documents from one party to another as specified in a contract. It typically includes details about the timing, location, method, and conditions for completing the transfer. Delivery can be physical (e.g., shipment of goods) or digital (e.g., electronic delivery of documents or software).
For example, a purchase agreement might specify that delivery of goods will occur within 30 days to the buyer's designated warehouse.
Why is delivery important?
Delivery is important because it establishes clear terms for how and when the obligations of one party to transfer goods or services are fulfilled. It helps ensure accountability, reduces disputes, and provides clarity about the expectations for both parties.
By including specific delivery terms in contracts, parties can address potential issues such as delays, damaged goods, or non-performance, and outline remedies or penalties if delivery obligations are not met.
Understanding delivery through an example
A furniture manufacturer enters into a sales agreement with a retailer. The contract specifies that the manufacturer will deliver 1,000 units of chairs to the retailer’s distribution center by March 15, 2025. Delivery is deemed complete when the retailer signs a receipt confirming the goods’ condition. This ensures both parties are aligned on the delivery expectations and process.
An example of a delivery clause
Here’s how a delivery clause might appear in a contract:
“The Seller agrees to deliver the Goods to the Buyer at [Insert Delivery Location] by [Insert Delivery Date]. Delivery shall be deemed complete upon the Buyer’s written acknowledgment of receipt and inspection of the Goods. The Seller shall bear all risk of loss or damage to the Goods until delivery is completed as defined herein.”
Conclusion
Delivery provisions are a crucial part of contracts involving the transfer of goods, services, or documents. By clearly defining delivery terms, contracts ensure accountability, minimize disputes, and protect the interests of all parties. A well-drafted delivery clause promotes transparency and ensures smooth execution of the agreement.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.