Cash Before Delivery (CBD) is a payment term in which the buyer is required to make full payment for the goods or services before they are delivered. This term is commonly used in international trade transactions to mitigate the risk of non-payment for the seller. By requiring payment upfront, the seller ensures that they will receive payment before the goods are released, reducing the risk of non-payment or default by the buyer. CBD terms are typically outlined in the sales contract or purchase order and specify the payment method and deadline for payment.
CBD is a payment method in which the buyer is required to make full payment for the goods or services before they are delivered or provided.
Yes, CBD is commonly used in various industries, especially for high-value or customized products or services.
Yes, CBD is legally binding as long as both parties agree to the terms and conditions of the transaction.
Yes, CBD can be used for online purchases, but it is important to ensure the credibility and trustworthiness of the seller before making any payment.
CBD provides buyers with the assurance that they will receive the goods or services they paid for before making any payment, reducing the risk of fraud or non-delivery.
CBD allows sellers to receive full payment upfront, minimizing the risk of non-payment or default by the buyer.
While there are no specific legal requirements for CBD transactions, it is advisable to have a written agreement or contract outlining the terms and conditions of the transaction to avoid any disputes.
If the buyer fails to make payment as agreed in a CBD transaction, the seller may have the right to cancel the order or take legal action to recover the outstanding amount.
CBD can be used for most types of goods or services, but it may not be suitable for certain situations where immediate payment is not feasible, such as long-term contracts or ongoing services.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 4th April 2024.
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