Contracting on the supplier’s terms can pose risks for the buyer. Common disadvantages include retention of title clauses (C), where the supplier retains ownership of goods until full payment is made. Also, suppliers may include clauses allowing them to raise prices without notification (E). These terms shift risk to the buyer and reduce predictability and control.
[Reference:, CIPS L4M3 Commercial Contracting Study Guide, Chapter 3, Section 3.1.3 – Standard forms of contract and negotiating key terms., , , , ]
Submit