Seller’s Delay

Contractual relations are based on the presumption that the seller will deliver the agreed goods to the buyer at the agreed time and in the agreed manner. If this does not happen, the seller’s performance is delayed. Delays are primarily assessed on the basis of the contract, but if no contract or applicable privisons exist, the provisions of the Sale of Goods Act are applied.

According to the Sale of Goods Act, the goods are generally considered to have been delivered when they have been handed over to the buyer. It is advisable to set out the time of delivery in the contract. If the parties have not agreed on the time of delivery the goods have to be delivered within a reasonable time after the conclusion of the contract.

A delay occurs when the contractually agreed time for performance has expired, but the performance has not been fulfilled. The seller’s performance is delayed as soon as the time for the performance expires. If nothing has been agreed in respect of sanctions for delayed performance, the provisions of the Sale of Goods Act are applied to the seller’s liability and delay. The sanctions contained in the Act are quite strict, making it advisable to draft detailed and clear contracts.

The buyer does not have to demand performance from the seller if the time of delivery has been agreed in advance. The seller’s liability for delayed performance does not require fault on the part of the seller. The seller is, however, not responsible for a delay if it is caused by a reason attributable to the buyer or force majeure.