deliveryversuspaymentperiaatteella

Delivery versus payment is a fundamental principle in contract law, particularly concerning the sale of goods. It dictates the sequence in which a seller must deliver goods and a buyer must pay for them. Generally, the principle establishes that performance is concurrent, meaning that delivery of goods and payment for those goods should happen at the same time unless the contract specifies otherwise.

In most standard sales transactions, the seller's obligation to transfer and deliver the goods is conditional on the buyer's obligation to pay for them. Conversely, the buyer's obligation to accept and pay for the goods is conditional on the seller's tender of delivery. This mutual dependency ensures that neither party is left vulnerable. The seller is not obligated to give up possession of the goods without receiving payment, and the buyer is not obligated to pay for goods they have not yet received.

However, this principle is not absolute and can be modified by the terms of the contract. Parties can agree to different arrangements, such as payment in advance, payment on delivery, or payment in installments over time. For example, a contract might require a deposit upfront, with the balance due upon delivery. Alternatively, a buyer might be granted credit terms, allowing them to pay after receiving the goods.

When the contract is silent on the timing of delivery and payment, the default position is concurrent performance. This principle aims to balance the interests of both the buyer and the seller, promoting fairness and reducing the risk of non-performance for either party. Deviations from this principle require clear agreement between the parties involved.