Does the Seller Have the Right to Request Payment Upon Delivery of Goods?
Is it possible to receive payment for excess goods delivered? Payment obligations of the buyer?
Summary:
My company and Company A have agreed on the sale of between 1000-2000 tons of steel. After reaching an agreement, both parties consented to purchase and sell 1000 tons. My company was informed that during the delivery process, Company A authorized Company X to receive the goods and forward them to Company Y. According to the inspection record conducted by the maritime inspection company, the weight of the steel was 1,286 tons. Company X signed for receiving the excess amount and further delivered the exact quantity to Company Y. Company A issued an invoice to Company X for transportation fees for 1,286 tons of steel and issued an invoice to Company Y for 1,286 tons of goods. When we demanded payment for the goods, Company A claimed they were unaware of the situation and did not agree to pay for the excess goods. Therefore, I inquire whether my company has grounds to sue Company A for payment for the excess goods.Detailed Content:
My company entered into an agreement with Company A to sell between 1000-2000 tons of steel. After deliberation, both companies agreed to conduct a transaction for 1000 tons of steel. During the delivery process, Company A entrusted Company X to receive and subsequently transfer the goods to Company Y. The quantity was determined to be 1,286 tons based on an inspection report by the maritime inspection organization. Company X signed off on receiving the full amount, including the surplus, and duly forwarded the entire quantity to Company Y. Subsequently, Company A billed Company X for the transportation cost of 1,286 tons and billed Company Y for the same quantity of goods. However, upon our request for payment, Company A refused on the grounds of being unaware of the situation and did not accept payment for the surplus goods. Is there a legitimate basis for our company to take legal action against Company A for the surplus goods they received?Legal Analysis:
The key issue centers around whether the agreement stipulated an exact quantity or a range, and whether Company A's authorization of Company X and subsequent actions can establish an implicit acceptance of the surplus. The inspection report and Company X's acknowledgment of receipt can be critical evidence in establishing the delivery and acceptance of 1,286 tons.Conclusion:
Your company could potentially have grounds for legal action depending on the detailed terms and conditions outlined in the agreement with Company A, as well as the subsequent acceptance and internal actions taken by Company A concerning the surplus goods. It is advisable to consult with a legal professional specializing in commercial contracts to explore the viability of this claim based on all available evidence.Are you entitled to receive payment for delivered excess goods?
Based on Article 43 of the 2005 Commercial Law relating to over-delivery of goods:
In cases where the seller delivers excess goods, the buyer has the right to refuse or accept the excess goods.
- If the buyer accepts the excess goods, they must pay according to the agreed price in the contract unless otherwise agreed by the parties.
When your company delivers excess goods, Company A has the right to refuse or accept the excess goods. Therefore, at the time of delivery, if they do not agree to receive this quantity, Company A has the right to refuse and request your company to take back the excess goods. However, Company X, which is authorized, has signed to receive the entire excess goods, did not make any responses, and forwarded them to Company Y. Company A has issued an invoice including the excess quantity and paid the fee to Company X. Company A has implicitly accepted the excess goods and has used this quantity for another entity. Company A's claim of not knowing about the receipt of excess goods is without basis.Therefore, your company's claim for payment for the excess goods is well-founded.
Obligations of the buyer to pay for goods?
Based on Article 50 of the aforementioned Law regarding payment:
The buyer is obliged to pay for the goods and receive the goods as agreed.
The buyer must comply with the payment methods, execute the payment according to the agreed procedure, and in accordance with the law.
The buyer must still pay for the goods in cases where the goods are lost or damaged after the risk is transferred from the seller to the buyer, except in cases where the loss or damage is caused by the seller's fault.
Sincerely!
