Can buyer refuse to pay as supplier did not deliver per time?

In a contract, both buyer and supplier agreed the lead time is 3 days. The contract also requires that any variation must be made in writing. Then the buyer places an order by phone call and requests delivery the next day, but the supplier delivers on the third day since the order.

Can buyer refuse to pay as supplier did not deliver per time?
A . No, the supplier delivers within a reasonable time
B. Yes, late delivery is a force majeure event
C. Yes, the supplier has breached the contract
D. No, supplier has shortened lead time to 1 day

View Answer

Answer: A

Explanation:

Lead time is the amount of time that passes from the start of a process until its conclusion. In procurement, lead time can be understood as the amount of time that passes from placing an order until the delivery.

In the scenario, the contract requires the supplier to make a delivery within 3 days since the order. This contract can only be amended with written consent from both parties. Therefore, there is no ground for shortening the lead time to 1 day because the new lead time is only the request of buyer. Then the supplier still makes delivery within agreed lead time.

LO 1, AC 1.1