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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3840
Experience:  Solicitors 2 years plus PQE
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We are an UK based trading company, we have a supplier based

Customer Question

We are an UK based trading company, we have a supplier based on Dublin, back in April, we have paid 30% deposit for an order over 200k, we were told initially that the cargo will be ready in May and then postponed till end of June, which only 1/6 of the cargo will be available. it's now mid of June, supplier keep saying no further information regarding the delivery. Please advise if there're any way to protect this transaction? Any action we should take?
We are also looking to place more order from the supplier, and we were told unless the deposit is paid, they will not know the lead time, etc. Is there anything we can do?
Much appreciated your help!
Submitted: 1 year ago.
Category: Law
Expert:  Ben Jones replied 1 year ago.

Hello, my name is***** am a qualified lawyer and it is my pleasure to assist you with your question today.

Customer: replied 1 year ago.
Hello Ben
Customer: replied 1 year ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer: replied 1 year ago.
Thanks for your time
Expert:  Ben Jones replied 1 year ago.

NO problem at all. I am unable to talk at the moment but please can you tell me, is this the first time you have placed an order with them? If so, have they provided you with any terms of business?

Customer: replied 1 year ago.
We started trading with them since last September, we have placed 270k+ worth of order with them and all delivered
Customer: replied 1 year ago.
We paid 70k+ deposit back in April, and no delivery date till now. But we had another order with them 2 weeks ago and it was delivered
Customer: replied 1 year ago.
We are looking to placed more orders, could be roughly 1m with them, but we are requested to pay the deposit first then the supplier will let us know the delivery date, etc
Customer: replied 1 year ago.
The supplier basically refuse to give us any information unless we pay the deposit
Customer: replied 1 year ago.
We dont really have any term of business other than an invoice from the supplier (delivery date has not been specified on the invoice)
Customer: replied 1 year ago.
All communication is carried out by emails
Expert:  Ben Jones replied 1 year ago.

OK, thank you for your response. I will review the relevant information and laws and will get

back to you as soon as I can. Please do not responded to this message as it will just push your questions to the back of the queue and you may experience unnecessary delays. Thank you.

Expert:  Ben Jones replied 1 year ago.

I have looked into your query in more detail but unfortunately as this is a cross-jurisdictional matter it is not something I can assist with. I will therefore ‘opt out’ and a colleague better placed to deal with the nature of your query should hopefully pick this up soon. Please do not reply in the meantime as that will just assign the question back to me and you will experience a delay. Thank you

Expert:  Alex J. replied 1 year ago.

Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. Does the Invoice from the supplier contain any terms and conditions? Did you tell them that the delivery date was a condition of your purchase?

Customer: replied 1 year ago.
Hello Alex. There's no terms and conditions on invoice. It only shows the product name, quantity, total amount and deposit amount. We were requested to pay the deposit to place the order and then supplier will advise us the delivery date. But we do communicate via email, and we were given an usual lead time is around 4-6 weeks. Is it possible for me to ring you to discuss, as it could be easier.
Expert:  Alex J. replied 1 year ago.

Hi, Thank you. I am not currently available for a telephone call, today I am only available on this thread. For future orders, if you want to protect yourself banks have special trade finance products that are based escrow arrangements to effectively insure your deposit against fraud and insolvency. These products come at a cost but if you are nervous about handing over large sums of money this may be away. The alternative is you send the supplier your own purchase orders which contain your own terms and conditions, these can include requirements that deposit are paid in to escrow and you have to the right to cancel without liability if orders are delayed too long. If they have delivered other orders presumably solvency is not currently an issue?

Customer: replied 1 year ago.
Supplier hasn't given any delivery date yet, the only reply we have from the supplier is ' no further information'. It was confirmed in email that we are able to cancel the order and receive the refund. is it possible that we can ask you to help us with the terms & conditions?
Expert:  Alex J. replied 1 year ago.

Hi, Thank you. I am happy to assist with an outline of the terms and conditions. It will take me a little while to prepare something, so I may not post it until over the weekend? Is that ok? Kind regards AJ

Customer: replied 1 year ago.
Great thanks. I would like to include competitive clause for any additional charge outside of the agreed invoice amount, as well as request for supplier to provide supporting document if additional cost incurred. Appreciated your help
Expert:  Alex J. replied 1 year ago.

Hi, No problem. I will revert to you as soon as possible.

Expert:  Alex J. replied 1 year ago.

My apologies for the delay, I have limited internet access all weekend. I am working on this today. Kind regards AJ

Expert:  Alex J. replied 1 year ago.

I would recommend the following terms:

1. Time is of Essence - Supplier acknowledges that time is of the essence in relation to any time limits/deadlines included in this Purchase Order. The Supplier is not entitled to alter any time limits/deadlines without the prior consent of the Purchaser;

2. Risk - the goods supplied by the Supplier shall remain at the risk of the Supplier until such time that they are delivered a location as notified by the Purchaser to the Supplier.

3. Price - All price contained in this Purchase Order are fixed and final and the Supplier shall not be entitled to increase its pricing in relation to any goods supplied under this Purchase Order;

4. Payment - any deposits paid by the Purchaser to the Supplier shall be fully refundable until such time that the goods are delivered to the Purchaser.

5. Liability - the Liability of the Purchaser to the Supplier shall be limited to the total unpaid value of the goods described in this Purchase Order. Under no circumstances shall the Purchaser be liable to the Supplier for any indirect and consequential losses or losses of profit of any kind;

6. Warranty - the Supplier warrants to the Purchaser that the goods supplier under this purchase order are fit for their intended purpose (or any purpose the Purchaser has communicated to the Supplier) and are of good quality - {INSERT ANY WARRANTY PERIOD}

7. Termination - Prior to the delivery of the goods the Purchaser may terminate this Purchaser Order at any time (by written notice) without any liability to the Supplier.

I think these are the key terms to go on the back of a Purchase Order. Do you have any of your own terms and conditions? Kind regards AJ