Establishing secure connection…Loading editor…Preparing document…

Delivery Agreement Clause

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

DELIVERY AGREEMENT CLAUSE

RECITALS

WHEREAS, Client Name: seeks delivery of goods and/or services described herein; and

WHEREAS, Supplier Name: has represented that Supplier can provide, pack, and deliver such goods and/or perform such services in accordance with the timelines and standards set forth below; and

NOW, THEREFORE, the parties agree that the following Delivery Agreement Clause shall govern the delivery obligations between the parties effective as of Effective Date: .

SCOPE OF WORK

DELIVERY TERMS

Delivery Point (place for tender of goods): . Supplier shall tender delivery during normal business hours unless otherwise agreed in writing.

Method of Delivery (carrier, FOB, hand delivery, etc.):

Costs of Delivery: Unless otherwise agreed, Delivery Costs shall be borne by: . Any prepaid or included freight charges shall be stated on the invoice.

Transfer of Title: Title to the goods shall pass to Client upon , unless the parties expressly agree otherwise in writing.

Risk of Loss: Risk of loss or damage shall transfer to Client upon . Supplier shall maintain packaging and handling practices sufficient to protect the goods in transit.

Client shall have calendar days from receipt to inspect goods and notify Supplier of any nonconformity. Absent timely notice, goods shall be deemed accepted.

PAYMENT TERMS

Total Contract Price (if applicable): $.

Payment Terms: Invoices are due within days of invoice date. Late payments shall accrue interest at % per month (or the maximum permitted by law).

Invoices shall reference delivery documentation and be sent to Invoice Address:

TERM AND TERMINATION

Term Commencement Date: . Termination Date (if fixed): .

Either party may terminate this delivery arrangement for convenience upon days' prior written notice. Either party may terminate for material breach that is not cured within days after written notice of breach.

Upon termination, Client shall pay for conforming deliveries received and accepted by Client prior to the effective date of termination; Supplier shall ship any outstanding conforming goods if requested and accepted by Client in writing.

CONFIDENTIALITY

Each party shall hold in confidence and shall not disclose Confidential Information of the other party. "Confidential Information" means nonpublic commercial, technical, or financial information disclosed in connection with this Clause, excluding information that is (a) known to the receiving party prior to disclosure, (b) becomes publicly available without breach, or (c) required to be disclosed by law.

Confidentiality obligations shall continue for years following termination or expiration of this Clause, unless otherwise required by law.

FORCE MAJEURE AND DELAYS

Neither party shall be liable for delays or failures in performance due to causes beyond its reasonable control, including acts of God, labor disputes, shortages, government action, or transportation disruption. The affected party shall give prompt written notice of a force majeure event and make reasonable efforts to mitigate its effects.

INSURANCE

Supplier shall maintain insurance coverage adequate for the nature of the goods and services, including commercial general liability and cargo insurance where applicable. Insurance shall name Client as additional insured where delivery involves on-site performance at Client premises. Evidence of insurance shall be provided upon request to: .

GOVERNING LAW

This Delivery Agreement Clause shall be governed by and construed in accordance with the laws of the state of , without regard to conflict of law principles.

ENTIRE AGREEMENT

This Clause, together with any incorporated schedules, purchase orders, and attachments, constitutes the entire agreement between the parties regarding delivery of the specified goods and services and supersedes all prior negotiations and representations. No amendment shall be effective except in a writing signed by authorized representatives of both parties.

MISCELLANEOUS PROVISIONS

Assignment: Neither party may assign its rights under this Clause without the prior written consent of the other party, except that either party may assign to an affiliate or successor entity in connection with a merger or sale of substantially all assets.

Party A (Client):

By:

Date:

Party B (Supplier):

By:

Date:

Enter text✕

What the Delivery Agreement Clause Does

A Delivery Agreement Clause is a contract provision that defines how goods or services will be delivered, when title and risk pass, who pays for shipping, inspection and acceptance procedures, and remedies for late or nonconforming delivery. In commercial contracts it sets delivery location, delivery schedule, packaging and labeling standards, carrier selection, insurance responsibilities, and force majeure treatment. Clear drafting reduces disputes over missed deliveries, quality issues, or cost allocation and establishes the procedural steps for notice, cure, and claims tied to shipment or handover.

Why a Clear Delivery Clause Matters

A well-drafted Delivery Agreement Clause allocates risk, clarifies timelines and costs, supports enforcement of remedies, and reduces operational friction between buyer and seller during fulfillment. It also provides objective acceptance criteria and procedures for inspection and claims.

Why a Clear Delivery Clause Matters

Who Commonly Drafts and Signs Delivery Clauses

Different roles interact with delivery clauses depending on the organization and transaction type.

  • Procurement and supply chain teams who manage vendor selection, shipping terms, and logistics performance metrics for recurring purchases.
  • Sales and account managers who need predictable delivery promises for customer commitments and SLA alignment.
  • Legal and contracts teams who draft liability, indemnity, and acceptance language to limit exposure for late or damaged shipments.

In many organizations these stakeholders collaborate to ensure the clause balances commercial objectives and operational feasibility.

Essential Components to Include in the Clause

A delivery clause should be concise but precise; include terms that define timing, responsibility, inspection, risk, remedies, and documentation to avoid ambiguity.

Delivery Terms

Specify Incoterm or plain-language delivery point and who bears freight and insurance costs.

Schedule

Define delivery windows, deadlines, lead times, and consequences for missed dates.

Risk of Loss

State when title and risk transfer from seller to buyer.

Inspection & Acceptance

Describe inspection period, sampling standards, and acceptance criteria.

Remedies

Set out cure periods, repair/replacement obligations, and liquidated damages if applicable.

Documentation

List required shipping documents, certificates, packing lists, and electronic delivery notices.

Step-by-Step: Completing the Clause for a Contract

Use this sequential checklist when inserting or reviewing a Delivery Agreement Clause to confirm contract readiness.

  • 01
    Identify Parties: Confirm legal names and contact information for both parties.
  • 02
    Set Delivery Point: Choose precise delivery location or Incoterm and record responsibility for freight.
  • 03
    Define Timing: Establish delivery deadlines, lead times, and acceptable windows.
  • 04
    Agree Inspection: Specify inspection steps, rejection process, and remedy timeline.

How to Configure Delivery Workflows in a Contract System

Translate clause items into system fields so procurement and operations can trigger logistics and acceptance workflows automatically.

Field Configuration
Delivery Location Field Populate with exact address and geocode where possible.
Lead Time Field Standardize in days and link to supplier SLAs.
Carrier Instructions Attach carrier account and routing requirements.
Inspection Trigger Generate inspection request upon delivery confirmation.

Operational Flow from Order to Accepted Delivery

A clear operational flow aligns contract language with the parties' logistics and inspection actions.

  • Order Issued: Purchase order triggers seller to prepare shipment.
  • Shipment Notified: Seller sends ASN or shipping notice to buyer.
  • Carrier Delivery: Carrier delivers to agreed location per the clause.
  • Inspection & Acceptance: Buyer inspects and issues acceptance or rejection notice.

Digital Signing and System Integration Requirements

When you e-sign or automate delivery clauses, ensure platform capabilities match legal and operational needs.

  • Document Formats: Support for PDF and DOCX is essential.
  • Audit Trail: Capture timestamps, IP, and signer attribution.
  • Integrations: Connect to ERP/CRM for automated routing.

Verify the eSignature provider supports required compliance standards and integrates with your shipment and order-management systems.

Typical Timing, Deadlines, and Processing Expectations

Common timing items should be explicit in the clause so parties share a consistent expectation for performance and remedies.

Delivery Deadline:

Specify exact date or lead time such as 'within 30 days of PO issuance'.

Inspection Window:

Commonly 5–30 days after delivery to notify seller of defects.

Cure Period:

Allow a defined number of days to repair or replace nonconforming goods.

Late-Delivery Notice:

Require written notice within a short period to trigger remedies.

Claims Deadline:

State any time bar for claims, e.g., 'no later than 60 days after delivery'.

Common Drafting and Execution Pitfalls to Avoid

  • Vague timing language such as 'prompt delivery' leads to differing interpretations and avoidance of contractual remedies.
  • Failing to state the point of risk transfer creates disputes about who bears loss for damaged or lost shipments.
  • Omitting inspection procedures or acceptance criteria shifts all ambiguity to informal operational practices and increases rejection disputes.
  • Not aligning contract terms with system fields prevents automated fulfillment, causing manual rework and missed deadlines.

Risks and Contractual Consequences of Poorly Defined Delivery Terms

Late Delivery: Liquidated damages; lost business.
Damaged Goods: Repair, replacement, or warranty claims.
Rejected Shipment: Return shipping and restocking costs.
Insurance Gaps: Potential uninsured losses.
Compliance Exposure: Regulatory fines for controlled goods mishandling.
Dispute Costs: Arbitration or litigation expenses.

eSignature Vendor Pricing and Feature Comparison

Comparison of starter pricing and core capabilities for common eSignature vendors; signNow is listed first per data sourcing rules.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial No No Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Security and Compliance Elements for Delivery Records

Encryption: TLS 1.2/1.3; AES-256 at rest
Audit Trail: Timestamped signing history
Access Controls: Role-based permissions
BAA Availability: HIPAA BAA when required
Standards: SOC 2 Type II, ISO 27001
Retention: Tamper-evident storage options

Primary Signers and Their Authority

Logistics Manager

Operates at the operational level and can confirm shipment readiness, carrier selection, and acceptance criteria; often authorized to sign delivery acknowledgements where delegated by procurement.

General Counsel

Approves legal terms and can sign clauses that modify liability or warranties. Legal signatory authority typically accompanies contract value thresholds or special indemnity provisions.

Practical Examples of Delivery Clause Language and Outcomes

Two concise scenarios show how clause choices affect outcomes in routine transactions.

Case Study 1

A mid-size supplier specified FOB destination with a 10-day inspection period.

  • Buyer rejected nonconforming goods within the inspection window.
  • The explicit inspection and cure language allowed prompt replacement and avoided a costly dispute by following the contract steps for rejection and return shipping.

Case Study 2

A technology vendor used a vague delivery deadline 'as soon as possible.'

  • A shipment delay occurred during holidays.
  • Absent a firm schedule or liquidated damages clause, the buyer sought cover costs in court; the lack of timing certainty increased litigation risk and recovery uncertainty.

Frequently Asked Questions about Delivery Agreement Clauses

Answers to common questions about drafting, signing, and enforcing delivery provisions in U.S. contracts.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users