Buyer's Defect

The buyer has certain obligations towards the seller, just like the seller has obligations towards the buyer. The buyer has to perform their part of the contract correctly and on time and when the buyer breaches a contract, the seller correspondingly has certain rights. Common breaches of contract by the buyer are late payment, failure to observe the duty of cooperation, and faults and delays resulting from collection or receipt of the goods.

The buyer is at fault if they neglect their duty to contribute to the fulfillment of the contract. The buyer’s duty of cooperation before the transfer of goods may e.g. consist of a duty to deliver raw materials, components, reports and other materials to the seller in accordance with the contract. The buyer may be required to provide the seller with information and instructions e.g. regarding the place of delivery. The duty of cooperation is greatest where the subject of the contract is a product specifically produced or ordered for the buyer and thus does not have the same marketability as so-called “bulk goods”.

The buyer must collect or take delivery of the goods. If the goods are not collected or received at the agreed time, there is a fault in the buyer’s performance. In connection with the failure to collect or receive the goods, storage becomes problematic. The risk of the goods usually passes to the buyer if the collection or receipt of delivery is delayed for a reason attributable to the buyer. The passing of the risk should be agreed upon in advance. Risk means the responsibility for keeping the products in a flawless condition.