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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.
Table of content
Legal Use & context
This term is primarily used in commercial contracts and sales law. It is relevant in various legal areas, including contract law and commercial transactions. Users may encounter this term when drafting or reviewing sales agreements, where it is crucial to understand the implications of delivery responsibilities. Legal templates available through US Legal Forms can assist in creating contracts that include this term, ensuring clarity and compliance with legal standards.
Key legal elements
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.
Common misunderstandings
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.
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