LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Suhas (CS)     20 December 2019

Material supplies without advance

Hello Experts

We have received an order for material supply having payment term as 20% advance and 80% against supply.

We have made the material ready but the advance is not yet recived.

What is the problem if we still supply the material? Does it weakens our position for advance payment?? It is customised product and hence can not be sold to others.

 

thanks in advance

 



Learning

 5 Replies

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108)     20 December 2019

1. IF the receiver does not have the financial capacity to give advance payment of 20%  (in lieu of 80% against delivery), THEN it obviously means that the receiver is financially not capable or cannot be trust for rest of the money.

2. A Bird in Hand is worth Two in the Bush.  Material in your godown is safe and with you.

3. By sending Material without agreed Advance, would show your impatience to do business and would contravene your oral /written agreement with the opposite party.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

Sankaranarayanan (Advocate)     24 December 2019

First you send a formal letter regarding the issues. Still the buyer not listen ... then send a legal notice  and take action accordingly. what  condition been made in your quotation for materials  and their purchases order.

Suhas (CS)     24 December 2019

Thank you expert.

My specific query is about the stregth of our case under sale of goods act or contract act for supplying material without receiving advance.

 

 

Hemant Agarwal (ha21@rediffmail.com Mumbai : 9820174108)     24 December 2019

1. IF the opposite party choses not to pay or rejects your consignment, THEN you have no ground for filing any proceedings for recovery of your money under the mentioned laws, since you yourself violated or contravened the terms of the deal.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

Sankaranarayanan (Advocate)     24 December 2019

your answer is in your question too. its come under contract so based on the jurisdiction it can be settled issues either by arbitration or court


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register