What does failure to deliver mean?

Failure to deliver refers to a situation where one party in a trading contract does not deliver on their obligation.

This factor is also known as non-delivery of products and services.

When a business accepted your payment for products or services, they must supply them to you within the timeframe they have indicated, or if no time was specified, within a reasonable time.

It is important to note, according to the Australian Competition and Consumer Commission, "it is illegal for a business to accept payment for products or services they do not intend to supply".

Such failures may occur when the seller does not own all or any of the underlying assets required at settlement, and so cannot make the delivery.

Nevertheless, if the customers do not receive the products or services they have paid for, the first step should be to contact the business/company to try and resolve the problem, or ask for a refund.


Definition of delivery (commerce)

In the context of commerce, delivery is when most consumer goods/products are delivered from a point of production (such as a factory or farm) through one or more points of storage (warehouses) to a point of sale (such as retail stores or online vendors) where the customers buy the good/product, to point of consumption.


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Last edited on 10 December 2019.