Cancelling orders

A buyer is legally entitled to cancel his order at any time before it has bee accepted by the supplier, or if:

• the goods delivered are of the wrong type or quality (if they do not conform
to sample).

• the goods are not delivered by the stated time (or within a reasonable time if
no delivery date has been fixed).

• more or less than the quantity ordered is delivered.

• the goods arrive damaged (but only where transportation is the supplier'
responsibility).

Unless the contract provides otherwise, it is the buyer's legal duty to collect and transport the goods from the supplier's premises. This would be so where the goods are sold loco, ex works or similar terms. The buyer is then liable for any loss or damage occurring during transport. Similarly under an fob or a cif contract, the customer is liable from the time the goods are loaded onto the ship.

Buyer seeks to cancel order due to adequate stocks

Customer's letter

Dear Sirs

On 2 March I ordered 100 tennis rackets to be delivered at the end of this month.

Persistent bad weather has seriously affected sales so I find that my present stock will probably satisfy demand in the present season. I am therefore writing to ask you to cancel part of my order and to deliver only 50 of these rackets instead of the 100 ordered.

I am sorry to make this request so late but hope that you will be able to agree to it in view of our long-standing business association. Should sales improve I will get in touch with you again and take a further delivery.

Yours faithfully

Supplier agrees to cancel order

A supplier will often agree to cancel or modify the buyer's order for a number of reasons:

• A wish to oblige a good customer.

• The loss of profit involved may be minimal.

• It helps to create customer good will.

• There may be a ready market for the goods elsewhere

• The customer's financial position may be doubtful.

• Legal proceedings are costly.

Dear

We have received your letter of 2 May asking us to cancel part of the order you placed on 2 March for tennis rackets.

We are naturally disappointed that there should be any need for this request. However we always like to oblige our regular customers and in the circumstances are prepared to reduce the number of rackets from 100 to 50 as requested.

We do hope that your sales will improve sufficiently to enable you to take up the balance of your order at a later date.

In this respect we hope to hear from you again soon.

Yours sincerely

Supplier refuses to cancel order

The supplier will sometimes refuse to cancel an order for various reasons:

• A wish to retain a sale.

• The manufacture of goods that cannot easily be sold elsewhere may have begun.

• A keen entrepreneur may be unwilling to forgo their legal rights.

The letter refusing a request for cancellation must be worded carefully and considerately if it is not to cause offence and drive a customer away for good. Such a letter must show that you understand the buyer's problems, and tactfully explain the difficulties that cancellation would create for the supplier. The reasons given must be convincing, otherwise the supplier is liable to lose the customer's goodwill.

Dear

We have received your letter of 2 May asking us to cancel part of your order of 2 March for tennis rackets.

We are sorry you find it necessary to make this request especially at this late stage. To be able to meet our customers' needs promptly we have to place our orders with manufacturers well in advance of the season. In estimating quantities we rely very largely upon the orders we have received.

We do not like to refuse requests of any kind from regular customers. However, on this occasion we have no choice but to do so. All orders, including your own, have already been made up and are awaiting delivery.

I hope you will understand why we must hold you to your order. If we had received your request earlier we should have been glad to help you.

Yours sincerely

Cancellation of order through delay in delivery

Dear

In our order number 8546 dated 18 August we stressed the importance of delivery by 4 October at the very latest.

We have already written to you twice reminding you of the importance of prompt delivery. However as you have failed to make delivery on time we are left with no choice but to cancel the order.

We take this action with regret but as the goods were required for shipment abroad, and as the boat by which they were to be sent sails tomorrow, we have no means of getting them to our client in time for the exhibition for which they were required.

We have informed our client of the action we have taken and should be glad if you would acknowledge the cancellation.

Yours sincerely