Contract Delivery

Contract Delivery refers to the process by which the seller actually places the goods under the control of the buyer or its designated carrier at the time, place, and in the manner stipulated in the contract. In foreign trade, it is not merely a physical handover but also involves risk transfer, cost allocation, and document submission. Use cases include defining delivery obligations under trade terms such as FOB, CIF, and FCA, as well as requirements for the shipment period under letter of credit payment. Points to note: the delivery point must be clearly specified (e.g., on board at the port of shipment or at a designated warehouse), and it should not be confused with 'shipment'—shipment emphasizes loading goods onto the means of transport, while delivery emphasizes the buyer obtaining control of the goods; a distinction must also be made between 'actual delivery' and 'constructive delivery' (e.g., tender of a bill of lading). Compared with 'delivery of goods,' contract delivery places greater emphasis on the specific stipulations of the contract terms. Under the EXW term, delivery occurs at the seller's premises, and risk transfers at that point; under DDP, delivery must be completed at the destination. Foreign trade practitioners should accurately understand it in conjunction with Incoterms 2020 to prevent claims for breach of contract arising from delayed delivery or a mismatch in location.