What are my rights if a carrier failed too give overnight delivery service as promised and it cost us $5,300?

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What are my rights if a carrier failed too give overnight delivery service as promised and it cost us $5,300?

I sent a package next day air, however it was not delivered until 2 days later. That single day cost us $5300 in lost commission due to a contract change with our client that became effective on the day of delivery. I can absolutely show pickup on the 29th and delivery on the 1st. The carrier does not show any reason for the late delivery.

Asked on May 26, 2015 under Business Law, Indiana

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Typically, you cannot recover lost profit (or commission) in cases like this for two reasons:

1) The law only allows the recovery of reasonably foreseeable damages. It would not have been reasonably foreseeable to the carrier that this delay would cause that magnitude of loss.

2) Furthermore, if you read the agreeement and/or terms of service with the carrier, they almost certainly limit their liability. If they do (read the find print), such a limitation, as something you agreed to (by going forward with using the carrier, despite those terms in the agreement or terms of service), is enforceable as a contract.


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