A lead time guarantee promises you'll deliver goods or services within a specific timeframe—for example, "all orders will ship within 5 business days." This is low-risk because it's just a promise about timing, not about quality or quantity. However, it matters legally because if you consistently miss the deadline, the buyer may have grounds to cancel orders or claim damages for their losses (like lost sales to their customers).
Only commit to a lead time you can reliably meet—add a buffer for unexpected delays. Include language like "lead times are estimates" or "subject to availability" to protect yourself. Also negotiate what happens if you miss the deadline: does the buyer get a discount, or can they cancel? Getting this in writing prevents disputes later. ---
Frequently Asked Questions
What does this clause mean in simple terms?
A lead time guarantee promises you'll deliver goods or services within a specific timeframe—for example, "all orders will ship within 5 business days." This is low-risk because it's just a promise about timing, not about quality or quantity.
Why should I care about this clause?
However, it matters legally because if you consistently miss the deadline, the buyer may have grounds to cancel orders or claim damages for their losses (like lost sales to their customers).