Deliveries by buyer: Overview, definition, and example
What are deliveries by buyer?
Deliveries by buyer refer to the responsibilities of the buyer in a transaction to deliver goods, services, or other specified items to the seller or another party as per the terms of a sales or purchase agreement. This can include the delivery of payment, documentation, or goods. The timing, manner, and conditions of these deliveries are usually outlined in the contract between the buyer and seller to ensure that both parties understand their obligations and expectations.
For example, in a purchase agreement, a buyer may be required to deliver payment by a certain date or provide specific documents, like permits or certifications, that are necessary for completing the transaction.
Why are deliveries by buyer important?
Deliveries by buyer are important because they outline the buyer’s obligations in a transaction and ensure that the deal progresses smoothly. They help establish clear expectations about what the buyer must deliver and when, preventing misunderstandings or disputes. If the buyer fails to fulfill their delivery obligations on time, it could delay the transaction or lead to penalties, affecting both parties' ability to complete the deal.
For SMBs, making sure that the buyer's delivery obligations are clearly defined in contracts helps manage the process efficiently, maintain good relationships, and ensure that all aspects of the transaction are completed on schedule.
Understanding deliveries by buyer through an example
Imagine your business sells custom furniture to a retailer. According to the sales agreement, the buyer (the retailer) is required to deliver payment for the furniture within 30 days of receiving an invoice. If the buyer fails to deliver payment on time, the seller (your business) may withhold shipment of the products or impose a late payment fee as outlined in the agreement.
In another example, a supplier may require the buyer to provide certain documents before shipment, such as a certificate of insurance or proof of funds. The buyer must ensure these deliveries are made in a timely manner to avoid delays in receiving the goods.
An example of deliveries by buyer in action
Here’s how deliveries by buyer might be referenced in a sales contract:
“The buyer agrees to deliver payment for the goods within 30 days from the date of the invoice. The buyer will also provide any necessary documentation, including customs clearance forms, required for the delivery of the goods by the agreed-upon delivery date.”
Conclusion
Deliveries by buyer are the obligations that the buyer must fulfill in a transaction, such as making timely payments or providing required documents. For SMBs, clearly defining these obligations in contracts helps prevent delays, ensures smooth transactions, and maintains strong relationships with buyers and other business partners. By specifying these responsibilities, businesses can minimize risks and ensure that deals are completed efficiently and fairly.
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.