Common use of Late Shipment Clause in Contracts

Late Shipment. When, for reasons other than force majeure as set out in Clause 2. or late or extended shipment under Clause 4. the goods have not been shipped by seven (7) days after contract shipment time, or when goods have not been shipped within an extended shipment period under Clause 5. Seller shall immediately notify Buyer (either directly or through his agent) of such failure to ship, the reason therefor and his best estimate of the prospective delay in shipment. Such goods when shipped shall be accepted by Buyer with the following allowances which must automatically be deducted from Seller's invoice: 1. Two (2) per cent of the gross invoice value if the ▇▇▇▇ of lading is dated more than seven (7) days but not more than fourteen (14) days after contract shipment time. 2. Three (3) per cent of the gross invoice value if the ▇▇▇▇ of lading is dated more than fourteen (14) days but not more than twenty-one (21) days after contract shipment time. 3. Five (5) per cent of the gross invoice value if the ▇▇▇▇ of lading is dated more than twenty-one (21) days but not more than thirty (30) days after contract shipment time. If the goods have not been shipped within thirty (30) days of contract shipment time, Seller shall immediately further notify Buyer that the goods have not been shipped and Buyer shall have the following options, to be declared by Buyer to Seller within ten (10) days (Saturdays, Sundays and Public Holidays in India or Bangladesh (strike out where not applicable) and/or Buyers country excluded) from receipt of Sellers notice: a. Cancelling the contract to the extent of such goods, in which event Seller shall be liable to Buyer for the difference, if any, between the contract price and the market price prevailing in Calcutta or Bangladesh (strike out where not applicable) for goods of the same description either (a) at contract shipment time or (b) on the date Seller notified Buyer hereunder that the goods have not been shipped as of thirty (30) days after contract shipment time, at Buyers option; or b. Accepting the goods with an allowance to be mutually agreed upon.