Assume you purchased specially made steel articles in the shape of your company’s logo to give out at a conference in five weeks. Because the items are being manufactured specifically for your company, you paid 50% of the $15,000 purchase price up front. The supplier notifies you 10 days before the conference that the shipment will be delayed because the goods were loaded on a truck that was destroyed in an accident involving a train. What are your rights related to the contract?
As per the given scenario, the supplier has notified you that the shipment of the specially made steel articles will be delayed due to unforeseen circumstances. This situation may trigger certain rights and responsibilities related to the contract. Here's a step-by-step explanation of how to approach the situation:
1. Review the contract: The first step is to carefully examine the contract you have with the supplier. Look for clauses or terms related to delivery time, force majeure, or any specific provisions addressing delays or non-performance due to unexpected events.
2. Check force majeure clause: Force majeure refers to events or circumstances beyond the control of the parties involved, such as natural disasters, accidents, or acts of God. If your contract includes a force majeure clause, it may outline the rights and obligations of both parties in case of such incidents. Review this clause to understand the supplier's obligations and your rights.
3. Communicate with the supplier: Contact the supplier to discuss the situation and the impact it will have on your business. It's important to maintain open communication and try to find a mutually agreeable solution. Document your conversations and any agreements made.
4. Assess the impact: Understand how the delay will affect your plans for the conference. Consider factors such as additional costs, missed commitments, or possible reputational damage. Document these impacts and gather any evidence that supports your claims.
5. Explore alternatives: Discuss with the supplier if there are any alternative solutions to mitigate the delay. This could include expedited shipping, offering a substitute product, or providing compensation for the inconvenience caused.
6. Request for remedies: If the supplier is unable to provide a satisfactory solution, you may consider requesting remedies such as a refund of the upfront payment or seeking compensation for any damages incurred as a result of the delay.
7. Seek legal advice if necessary: If discussions with the supplier do not lead to a resolution or if there are significant financial implications, it might be necessary to consult with a legal professional who specializes in contract law to understand your legal rights and options.
Remember, each situation and contract may vary, so it's essential to consult the specific terms and seek professional advice when needed.