The 5 most common misunderstandings when canceling an order

We have listed them:

1. Customer cannot cancel unilaterally
Often the first response from supplier to a cancellation request from buyer is that costs must be paid. But the starting point must be that the customer cannot unilaterally cancel, certainly not for financial reasons: buy is buy!

2. VAT in invoice
The supplier often sends a damage claim after cancellation in the form of an invoice to the customer, including VAT. That is not correct because it is a claim for damages and the VAT rules do not apply;

3. Suspend / dissolve before itself in default with delivery (right to invoke in time!)
After a buyer has indicated that he wants to cancel an order, a discussion often arises, which can sometimes take quite a long time. Sometimes the supplier forgets that he himself is in default with the delivery of the goods of the order, which the buyer can use against him. It is therefore important that in such a situation the supplier suspends his delivery obligation in time and preferably in writing, or dissolves the order;

4. General Terms and Conditions not applicable
Unfortunately, we regularly see that suppliers do apply general terms and conditions of sale, but that they have not been properly agreed with the customer, which means that they do not apply. This is unfortunate, because good general terms and conditions usually offer extra options for the supplier in the situation that the customer wants to cancel an order;

5. Amount of damage
The supplier must be able to prove the damage it has suffered, even if the general conditions include a percentage of damage (Modint Conditions) for these types of cases. That is quite difficult in practice and that is sometimes forgotten, certainly in the situation that litigation is required.

Source: MODINT Credit & Finance
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