Agribility - Instalment Deliveries

Instalment deliveries

It is common in commodity trading to agree for delivery to be performed in several instalments instead of delivering the entire quantity in one shipment. 

So far as the instalment contracts are concerned, difficulties usually arise when something goes wrong with one or more instalments, e.g., the buyer did not pay for one or more lots, or the seller delivered several lots out of contractual quality.

This module is intended to explain the logistics and the law behind instalment deliveries. This module explains why instalment deliveries are common in commodity trading, and the important elements of instalment contracts.

By the end of this module, the learner should be able to:

• Explain how to identify whether a contract allows for instalment deliveries
• Discuss the different types of instalment contracts
• Explain what remedies are available to the innocent party for a breach of an instalment deliveries contract
• Understand how the Gafta Instalment Clause operates