Question:
“We’ve just signed a big supply contract, but now the vendor is delaying deliveries. The agreement doesn’t clearly define penalties for delays. Is there a way to fix this or protect ourselves moving forward?”
Answer:
Ah, the classic “missing penalty clause” predicament—a favorite among vendors who test your patience and inventory levels simultaneously. First, let me assure you, you’re not alone. Contracts without proper clauses often lead to sleepless nights and long meetings. But don’t worry, there’s a way out, and it doesn’t always involve lengthy battles in court.
This blog is a part of our Agony Uncle Series .
Let’s tackle this systematically:
- Immediate Action – Open Communication:
Reach out to the vendor. Sometimes a good old-fashioned conversation (or a firmly worded email) can nudge them into compliance. If the delays persist, having a neutral third-party step in for mediation could save the day—and the relationship. This is where our Alternate Dispute Resolution (ADR) team comes in, trained to turn even the frostiest standoffs into handshake moments. - Legal Remedies – If Things Get Serious:
Even if your contract doesn’t specify penalties, UAE law recognizes the importance of timely performance. Depending on how bad the delays are and the losses they’ve caused you, you could still pursue damages. Our litigation experts are well-versed in DIFC, ADGM, and federal courts to get you what’s fair. - Future-Proofing Your Contracts:
Now, let’s talk prevention, because fireproofing is always better than firefighting. A clear Liquidated Damages Clause for delays ensures your vendor knows exactly what’s at stake for missing deadlines. Plus, we can help include milestone-based obligations, so any delays raise red flags early. - Your Secret Weapon – Arbitration Clauses:
For high-stakes agreements like yours, arbitration provisions can be a lifesaver. With our ADR specialists, you’ll have clauses that keep disputes quick, private, and as drama-free as business disputes can be.
So, to sum it up: Yes, you have options. And yes, we can help—whether it’s negotiating with the vendor, preparing for litigation, or building rock-solid contracts for the future. Ready to turn this vendor hiccup into a learning opportunity? Let’s talk.
We’re Here to Help!
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