Legal examination of the delivery contract

Dec, 17 2021

Contents:

Introduction

A supply contract is a document that records agreements between economic entities. One party undertakes to deliver the goods of proper quality in the prescribed quantity within a certain time frame. The other party – the buyer – undertakes to accept and pay for this product in a timely manner. However, like any documents, this contract may require legal expertise designed to protect the interests of the parties.

In what cases is the expertise of the delivery contract in demand

Almost all commercial companies, with rare exceptions, resort to the support of lawyers when it comes to the execution of contracts that confirm the order of materials, equipment, goods, cargo. Specialists study the content of supply contracts in order to prevent violation of deadlines, prevent downtime, theft or receipt of low-quality goods.

The conclusion of contracts with suppliers is all the more important because the very existence of the enterprise often depends on the supply of materials. Production can completely stop if the factory does not receive raw materials on time – and then the business will suffer large financial losses, and it may have to pay a penalty. Shops, cafes, restaurants cannot function properly at all without timely deliveries.

In order to ensure that the delivery dates are not disrupted, and suppliers do not violate the rules, each delivery contract is drawn up by an experienced lawyer. After that, an expert study is conducted: how well the contract is drawn up. This type of legal services is widely in demand among representatives of small, medium and large businesses.

Objectives of the examination of the supply contract

  • Protection of the property rights of the parties. If we are talking about wholesale deliveries, the cost of goods can reach amounts with a large number of zeros. Damage or theft of such property risks becoming a financial ruin.
  • Guarantee of the purity of the transaction. The study of the supply contract provides each of the parties to the agreement with transparent, legitimate, favorable terms of cooperation.
  • Prevention of property disputes. Competent legal support allows you to prevent litigation and other conflicts between the parties to the agreement.

The procedure of legal examination of the supply contract

The supply contract is considered signed if the parties have agreed on the essential conditions, fixed them in the prescribed form. The provisions to be contained in the contract are spelled out in the Civil Code of the Russian Federation:

  • Name, quantity of goods
  • Unit price, product batch
  • Terms of delivery: method, who pays, who insures the goods
  • Delivery time
  • The order of reception and transmission
  • List of warranty obligations
  • Dispute resolution procedure

The delivery contract must be drawn up in writing. When changing the quantity of the batch, the cost of the goods, all changes are recorded in additional appendices. These appendices are signed separately, but they are an integral part of the contract.

Special attention is paid to the responsibility of the parties in the preparation and examination of the supply contract. It can be expressed:

  • Penalty
  • Compensation for the damage caused

The study itself is carried out before the parties sign the agreement, because after signing the deal is considered concluded (it can be challenged, but it is more difficult and more expensive than checking the text of the contract in advance). The study takes place in several stages:

  • Checking the structure of the document. Lawyers study how correctly the details are filled in, the articles of laws referred to by counterparties are given. Experts study the general structure of the contract, make sure that there are all paragraphs and sections provided for by law.
  • Analysis of the text of the contract for compliance with Russian legislation. This is a time-consuming stage that requires the lawyer to make sure that the basic conditions of the Civil Code of the Russian Federation are in place, as well as the possibility of achieving the client’s final goals by signing an agreement. At the same stage, experts check whether the financial interests of the parties have been violated.
  • Preparation of the final conclusion. This is the final stage: the lawyer draws up a document where he fixes conclusions about the possibility of concluding a contract, notes the identified nuances that are recommended to be eliminated before signing.

The result of the verification is a written conclusion that indicates all possible inaccuracies, shortcomings and controversial points in the text of the agreement. Both the entire document and controversial articles can be subjected to examination. If the parties have previously agreed on the terms of the contract, the lawyer must provide a copy of the memorandum, the preliminary agreement.

Author of the article
Legal examination of the delivery contract
Valentina Khlavich
Managing Partner
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