Sellers can terminate contracts of buyers, who delay take delivery of goods, even after payment

Sellers can terminate contracts of buyers, who delay take delivery of goods, even after payment

Saudi Gazette report JEDDAH — I nternational sellers are allowed to withhold goods until the buyer pays the expenses caused by his delay in taking delivery of goods. In such cases, goods would continue to be under the possession or at the disposal of the seller. However, there is an exemption in cases wherein there is a condition to make payment of the price of goods only at the time of its delivery. This is one of the provisions of the United Nations Convention on Contracts for the International Sale of Goods (CISG) or the Vienna Convention. The Saudi Council of Ministers approved on June 22, 2023 the Kingdom’s accession to the UN CISG. T he move will enable Saudi Arabia to implement regulatory and legislative frameworks for cross‑border trade in line with international standards, leading to the integration of its economy with regional and global markets. In addition to helping the Kingdom enhance its local contract system, accession to the CISG will also provide clarity to businesses through improved transparency in international trade procedures. It also provides mechanisms to resolve disputes more efficiently and helps eliminate trade obstacles. It should also promote the diversification of the Saudi economy, and