Customers Refuse to Take Delivery? Teach You How to Use Legal Means to Recover Losses!

A batch of components exported to Poland, but the customer has been delaying taking delivery. What should be done? Facing this situation, not only is the capital tied up, but it also involves additional costs such as port demurrage and storage fees. To avoid these potential economic losses, using legal means may be an effective solution. Lets explore in depth how to solve this problem through legal means.photovoltaicTake measures in accordance with the Maritime Law

Check the contract terms and clarify responsibilities

The first step is to carefully review the contract signed with the customer. The main terms of the contract usually involve delivery, taking delivery, advance payment, payment, and liability for breach of contract. It is necessary to check whether the contract clearly stipulates the time limit for taking delivery and the liability of the customer for delaying taking delivery. If the customer fails to take delivery within the agreed time, it may be liable for breach of contract. In this case, it is advisable to find a professional lawyer to interpret the contract terms in detail to clarify the customers liability for breach of contract.

Determine the dispute resolution method

Next, the dispute resolution method in the contract also needs to be clarified. If the contract stipulates arbitration, it is necessary to check the relevant agreements of the arbitration institution, the applicable law, and the place of arbitration, and file an arbitration according to the arbitration agreement. You can hire local or domestic lawyers to represent the case. If there is no agreement on the dispute resolution method in the contract, or if it is agreed to adopt court litigation, it shall be confirmed whether it is under the jurisdiction of the local court. If it is confirmed to be under the jurisdiction of the local court, it is recommended to hire a local practicing lawyer to represent the litigation of this case.

Send a letter in advance and conduct due diligence

Before initiating formal litigation or arbitration, you can first send a letter to the other party through a lawyer or a legal service institution. This not only helps to fix relevant facts but also clarifies the requirements for the customer in the letter, as well as the consequences the customer will face if it does not reply or handle within the time limit. At the same time, you can check the business license, business license, industry certificates, etc. of the customer company, and use search engines, browse the customers website, etc. to judge the customers credit status. Understand the customers past business situation and investigate the customers liability situation and repayment ability through banks or overseas chambers of commerce. These can all be important preparations before the start of the dispute resolution process.

Pay attention to retaining communication evidence

Finally, it is recommended that the Chinese side must retain relevant evidence during the communication process, including written records (such as emails, chat records, phone recordings, etc.) in which the customer clearly indicates that it does not want to continue to perform the contract. These evidences will be very important in the legal process and can effectively support your claim.

First of all, according to Article 87 of the Maritime Law, if no one takes delivery of the goods after they arrive at the port of destination, the carrier has the right to detain the goods and apply to the court for an order to auction the goods. The proceeds from the auction shall be used to pay relevant fees such as demurrage and storage fees. Therefore, once it is found that the customer delays taking delivery, it is recommended to resolve the dispute as soon as possible through commercial or legal channels to avoid more costs caused by the backlog of goods at the port.

Generally speaking, in the face of the situation where the customer does not take delivery, legal means are an important tool to protect ones own rights and interests. By carefully reviewing the contract, evaluating the dispute resolution method, conducting sufficient due diligence, and retaining complete communication evidence, you can better respond to the customers non - performance behavior and minimize losses.

Risks in business are inevitable, but as long as legal means are used reasonably, we can find ways to deal with them in a complex environment and ensure that our own interests are not damaged.foreign tradeCustomer Refuses to Take Delivery? Teach You How to Use Legal Means to Recover Losses!_Shanghai Zhongshen International Trade Import and Export Agency Service