[Question] Legal question, is a purchase order binding if delivery is late

[tristand]

Hi all

I am a newbie to posting to this forum but have been browsing it from time to time.

I have a question, is a purchase order binding if the delivery date is missed?
The purchase order was placed and a deposit paid five months ago but delivery will
be 2-3 weeks after the originally stated date.
The order was for a per-production product, this point was made very clear to the
customer.

What is the criteria for enforceability of a purchase order?

Thanks

[Dave A]

Is there nothing in the fine print about default and cancellation?

[tristand]

There are no explicitly stated T&Cs so I and trying to find out what the standard terms / "Naturalia" are.
Let me explain the circumstances, my (small) company is manufacturing specialized electronic products and the client
placed a pre-production order late last year and paid a deposit. Because of the logistics nightmare going on, the delivery has slipped by about
2 weeks due to upstream supply issues. They are now saying that they may want to cancel their purchase order and want a refund. I am
fairly sure that is not legal within some limits but I am trying to find out exactly what those limits are. Google has been unhelpful in finding
any meaningful resources.

Comprehensive T&Cs will be applied in future.

[Blurock]

Open communication and building strong relationships with customers are very important.
A sale is not concluded once you get the order. Maintaining the relationship and keeping the customer's interest is.

1. Do have T&C's in your quotes
2. Have you timeously communicated the delays sue to a breakdown in the global supply chain? A 2 - 3 week delay is not unreasonable under these circumstances.
3. The deposit was obviously to cover custom or specialized components and equipment that cannot be resold to other customers.
4. You may therefore be able to claim these direct expenses to be deducted from the deposit paid.
5. Negotiate with the customer (in person if possible) and explain the situation, including your expenses.
6. The customer will now have to find a new supplier and it may take longer than the anticipated 2 - 3 weeks for him to get his product. Point this out to him.
Arbitration or litigation will further delay the problem. Let him allow you to get on with the job and then pull out all the stops to deliver.
7. Hopefully he was happy with your service and quality in the past and will consider continuing the relationship.
8. Stay calm and do not lose your temper. (you are dealing with a king - the customer)

Good luck with your negotiations.

[tristand]

Thank you for providing some guidance on the issue.
Generally I find supply problems, regardless of their nature can be discussed and a solution or plan of action formulated.
However, this customer has been a bit aggressive.
Thanks again

[Blurock]

Thank you for providing some guidance on the issue.
Generally I find supply problems, regardless of their nature can be discussed and a solution or plan of action formulated.
However, this customer has been a bit aggressive.
Thanks again

You do get A&$3holes everywhere and most of the time it is about ego.
However, in my experience a difficult customer very often becomes your most loyal customer once he understands all the issues and everything has been sorted out to his satisfaction.

The bottom line is; all customers seek attention.
As an example: how do you feel when the checkout lady at the till ignores you and continues to chat and laugh with her colleague while ringing up your purchase?
Or the clerk behind the counter is obviously chatting up a buddy while ignoring you and making you wait?