Disputes with Suppliers

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Disputes with Suppliers
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• Good suppliers are key in the efficient running
  of your business.
• Unfortunately in the course of business, you will
  inevitably run into difficulties with your
  suppliers, such as

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• Failure to deliver the supply by the date
  required
• You ordered 200 kilograms of steel for a
  construction contract, to be delivered by 10
  February. You do not receive the steel on 10
  January. The supplier says you never specified a
  delivery date and they cannot get you your steel
  for another 3 weeks, which is too late for the
  construction contract. There is no written
  contract for the provision of the steel from the
  supplier.

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• 2. The goods are faulty
• When you use the steel you received for your
  construction contract, it cannot withstand the
  pressures that steel of the quality ordered
  should and this affects the integrity of the
  building you are constructing. It is clear that
  the steel is not fit for purpose and as such is
  faulty.

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• Solutions
• 1. Talk to the supplier about the problems with
  the goods (delay, not fit for purpose) and
  request that these problems are rectified as soon
  as possible. If this fails, obtain the steel from
  an alternative supplier and seek the difference
  in cost (if any) from the original supplier,
  bearing in mind that you have a duty to mitigate
  your costs.

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• As the supplier claims you did not specify the
  date you required the goods, they are likely to
  dispute your claim for costs. Depending on the
  communication surrounding the request for steel,
  you may or may not be successful in claiming
  these costs.

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• 2. To avoid situations like this arising again,
  you should prepare a standard contract to be
  signed by you and all suppliers to ensure the
  terms are clear to all parties, including
  delivery due dates, quality of goods and manners
  of redress should either party not perform as
  required under the contract.

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• White and Mason Lawyers can assist with your
  commercial law needs.
• This is general advice only. Liability limited by
  a scheme approved under Professional Standards
  Legislation.