Delivery disputes constitute a major category within international trade: incorrect products, delays, damaged goods, missing documents. In our practice, we assist Dutch importers and exporters with such disputes. A good combination of Incoterms, CISG, and transport conventions determines who is responsible. Acting quickly and documenting often makes the difference between full recovery and partial compensation.
What is the legal issue?
Delivery disputes revolve around whether delivery was made correctly, on time, and in the right quantity. Internationally, rules vary regarding conformity, complaints, transfer of risk, and remedies. Incoterms divide costs and risk, but not all aspects of delivery. A conflict often arises due to differing expectations regarding quality, documentation, and timing.
What does the law say?
Under Dutch law, Articles 7:9 and 7:17 of the Civil Code govern delivery and conformity. The CISG governs international sales with its own complaint periods (Article 39) and remedies (Articles 45-52). Incoterms 2020 allocate risk and costs. Under English law, the Sale of Goods Act 1979 and common law govern. Separate conventions apply to transport: CMR (1956) for road, Hague-Visby Rules for sea, and the Montreal Convention 1999 for air.
Insurance under Institute Cargo Clauses supplements and limits financial risk in the event of transport damage.
What risks and costs do you face?
Unanswered complaints lead to reputational damage and loss of customers. Choosing the wrong Incoterm makes the transfer of risk unclear in the event of damage in transit. A late complaint results in the loss of rights under Article 39 of the CISG. Awkward proving transport damage leads to the rejection of an insurance claim. In international sales, multiple legal systems can overlap.
Practical example from our practice
We represented a Dutch importer who received textiles from Bangladesh with non-standard colors. Inspection within 48 hours led to a documented photo report. A complaint was filed via an NNN contract with the Bangladeshi supplier under the contractual quality specification. LCIA arbitration in Singapore awarded damages plus repossession within 14 months. Prompt inspection and a strong contractual basis made the difference.
What can you do?
Incorporate clear quality specifications as an attachment. Define delivery location, timing, and documents precisely. Inspect immediately upon receipt and document under Section 38 CISG. File a written complaint within the time limit. Combine with transport insurance and assess the policy in the event of damage. Maintain good relationships with freight forwarders for evidence. See also our article on Which Incoterm should you choose?