Notice to Inform about the Delay in Payment for the Delivery of Goods

A Notice to Inform about the Delay in Payment for the Delivery of Goods ("Notice") is used by a Seller when a Purchaser is late in making the payment for goods delivered. The Notice contains the date and duration payment was due, and other related information. The Notice is typically the initial step taken by a Seller to recover overdue payments before resorting to legal action.

How to use this document?

The Seller can use this document to remind a Purchaser that their payment is due and give them notice of late payment before escalating the matter to recovery of goods delivered or other serious legal action. The Notice includes information for identifying the Seller and Purchaser, details about the delivery of goods, including the agreed payment terms, as well as the resolution to the issue. The notice can be sent concerning delayed payment under any type of Sale of Goods Agreement or Invoices.

It is better to attach all supporting documents along with this notice including a copy of the Sale of Goods Agreement, Invoices, Proof of Delivery documents, etc.

After completing the Notice, it is essential to verify the method of sending the notice specified in the Sale of Goods Agreement. Different Sale of Goods Agreements may have different ways of sending notices, so it is important to check them carefully. In case there is no mention of the notice, it can be sent to the Purchaser via registered mail, email, or by hand delivery. Sending the Notice through registered mail or email allows for keeping a record that the notice was sent and received by the Purchaser. This record may be useful in the future if legal action needs to be taken.

Applicable law

The clauses mentioned under the Sale of Goods Agreement including alternative dispute resolution methods, way of sending notice, etc. need to be considered. The notice will be covered under the general provisions of the Indian Contract Act, 1872.

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