No Arrival, No Sale: What It Means for Buyers and Sellers

Definition & Meaning

"No arrival, no sale" is a delivery term often found in sales contracts. This term indicates that the seller is responsible for delivering goods to a specified location and bears the risk of loss while the goods are in transit. If the goods do not arrive on time or arrive damaged, the buyer has the option to either reject the goods or accept them at a reduced price.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A retailer orders electronics from a supplier with a "no arrival, no sale" clause. If the shipment arrives late, the retailer can choose to cancel the order or accept the items at a discount.

Example 2: A restaurant orders fresh produce for a special event. If the delivery is damaged or does not arrive on the agreed date, the restaurant can reject the delivery or negotiate a lower price. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State Variation
California Specific consumer protection laws may apply to delivery terms.
New York Contract law may require additional disclosures regarding delivery terms.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Difference
FOB (Free on Board) A shipping term indicating when ownership of goods transfers from seller to buyer. No arrival, no sale focuses on delivery failure rather than ownership transfer.
Delivery Terms General conditions under which goods are delivered. No arrival, no sale is a specific type of delivery term with unique buyer rights.

What to do if this term applies to you

If you are involved in a contract that includes "no arrival, no sale," it is important to understand your rights. If goods do not arrive as expected, review the contract for your options. You may choose to reject the goods or negotiate a discount. For assistance, consider using US Legal Forms to find templates that can help you draft or modify your agreements. If your situation is complex, seeking professional legal advice is recommended.

Quick facts

  • Term: No arrival, no sale
  • Context: Sales contracts
  • Buyer Options: Reject or accept at a discount
  • Risk: Seller bears risk during transit

Key takeaways