In business, on-time delivery is one of the important factors that helps sellers build reputation and trust from customers.

This article was consulted by Lawyer Nguyen Quang Trung

However, there are many cases where the seller cannot deliver on time for various reasons. To limit legal risks and protect their rights in such cases, the seller needs to be carefully prepared legally. This article will introduce how the seller can handle this issue from a legal perspective to protect themselves from possible risks.

1. Understand the legal regulations related to the contract

Before conducting transactions, the seller needs to clearly understand the legal regulations related to the contract they intend to sign with the customer. The following points should be noted:

• Content of the contract: The seller needs to carefully read and understand the terms of the contract, especially the terms related to delivery time, rights and obligations of the parties, as well as conditions for exemption from liability.
• General legal regulations: Commercial laws, contract laws, and other relevant legal regulations may affect the seller’s interests. It is necessary to master these regulations to avoid legal troubles later.

2. Add protective clauses in the contract

To limit the risk of not being able to deliver on time, the seller should include the following protective clauses in the contract:

• Exemption clause: This is a clause that allows the seller to be exempted from liability if it cannot perform its obligations due to objective reasons such as natural disasters, wars, or unforeseen events. This will help the seller minimize legal liability when there is a delay.
• Penalty clause: This clause specifies the penalty or compensation that the seller will have to pay if it fails to deliver on time. The seller may consider reducing the penalty if it is accompanied by a reasonable reason for the delay.
• Extension of delivery clause: The seller may request an extension of the delivery time in the event of an unexpected incident. This gives the seller more time to handle the situation without breaching the contract.

3. Communicate promptly with customers

When the seller realizes that it may not be able to deliver on time, it is necessary to notify the customer as soon as possible. Timely communication not only helps the seller demonstrate professionalism but also helps protect their rights:

• Written notice: A formal written notice will help build a clear legal record of the situation and the reason for the delay. This can be useful in the event of a dispute later.
• Explain the situation: The seller should provide specific information about the cause of the delay and the expected time of resumption of delivery. Transparency will help reduce customer dissatisfaction.
• Negotiate compensation terms: If the customer requests compensation or support, the seller should negotiate reasonably to find a mutually beneficial solution.

4. Implement risk mitigation measures

The seller should also implement specific measures to minimize possible future risks:

• Create a contingency plan: The seller should have a contingency plan for possible delays that can be implemented immediately when necessary. This may include finding alternative suppliers or shipping partners.
• Monitor production and delivery progress: The seller should regularly check the progress of the production and delivery process to detect problems that may cause delays early.
• Employee Training: The seller should provide internal training to ensure that its employees have a clear understanding of the contract, as well as the contract implementation process, conflict resolution skills, and contract-related crisis management. By providing comprehensive and ongoing employee training, the seller can minimize legal risks and maintain good customer relationships.

Conclusion

In general, the seller’s expected failure to deliver on time is a common business situation, and how the legal aspects of this situation are handled can make or break the business.

By being well prepared and acting proactively, the seller can not only minimize legal risks, but also build professionalism in operations and maintain positive customer relationships.