SCLA | User use cases of Cancellation Fees

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As the User do I need to meet any requirements to request a Cancellation?

Please check out the related article: The User of a Leasing Deal is requesting a Cancellation, which requirements need to be met? 

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Cancellation fees use-cases for Users

1. What if a deal has been ✅ accepted, but the Release has ❌ not been provided yet...
If I cancel this deal, do I need to pay the Cancellation Fee? 

According to the Standard Container Leasing Agreement :

  • Sub-clause 12 (a)
    After a deal is accepted, the deal can be canceled within the first 12 hours without a Cancellation Fee. 

  • Sub-clause 12 (d) (ii)
    Supplier shall provide a Release Reference within 3 days after the Deal is accepted, and after a 24-hour deadline given by the User in the leasing deal's chat, the user can request to cancel the deal and the supplier shall pay the Cancellation Fee.

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2. What If the Supplier creates a Release Reference with a validity of less than 28 days and cancels it,  who has to pay for the Cancellation Fee?

According to the Standard Container Leasing Agreement :

  • Sub-clause 12 (d) (ii)
    If the user gives the supplier a 24-hour deadline and there is no valid updated Release Reference from the supplier, the user can cancel the deal and the supplier shall pay the Cancellation Fee.

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3. If the supplier provides a Release Reference with a validity of 14 days or less, and I have not picked up the containers yet, are there any cancellation fees? 

If the user does not pick up the containers, and also does not ask for a new or extended Release Reference, the supplier can ❌ cancel the deal (after 14 free days + and a final 14-day deadline sent by the Supplier = 28 days in total), the user shall pay the Cancellation Fees.

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4. What if a Deal is accepted for a total quantity of 10 units, but the supplier only released 5 units, and I have not picked them up.

➡️ Now the supplier asks to cancel the deal within the 14 free days ❌ do I need to pay the Cancellation Fee for all 10 or 5 units?

If the supplier cancels the deal, the supplier shall pay the Cancellation Fee for 10 units. 

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5. What if the Release Reference is unknown in the depot, I can't pick up the units...
Who pays the Cancellation Fee?

According to the Standard Container Leasing Agreement :

  • Sub-clause 12 (d) (ii)
    The user shall give the supplier a 24-hour deadline to get a correct Release Reference, and if the user does not get one, the user can cancel the Deal and the Supplier shall pay the Cancellation Fee. 

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6. If the supplier gives a valid permanent Release Reference, can the supplier still give a 14-day deadline, then cancel the deal and collect the Cancellation Fee from me?

Yes, a 14-day deadline notice can stop the validity period of the Release Reference. The supplier can give this 14-day deadline after 14 free days. 

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7. What if it has been 17 days after the Release was created, and I asked the supplier to extend the Release Reference ➡️  but the supplier was not responsive, and the next day the supplier requested to cancel the deal.

Do we need to wait another 14 days until the deal can be canceled?

  • The supplier needs to provide a valid Release Reference to the User. If this does not happen, then the User can give a 24-hour deadline and cancel the deal, and the supplier shall pay the Cancellation Fee.

  • If the supplier gives a valid Release Reference and also gives a pick-up deadline of 14 days (and the user does not pick up within that period), the supplier can cancel the deal, and user shall pay the Cancellation Fee. 

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8. The release expired, if I still want to pick up the units and the supplier is unresponsive, can I give a cancellation deadline?

According to the Standard Container Leasing Agreement :

  • Sub-clause 12 (d) (ii)
    The user
    needs to give a 24-hour deadline to cancel the deal and get the Cancellation Fee.

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9. If the supplier cancels the deal before the Release Reference expires, then the supplier should pay the Cancellation Fee? 

According to the Standard Container Leasing Agreement :

  • Sub-clause 12 (d) (ii)
    The user shall give a 24-hour deadline. If no valid Release Reference is given to the user, the user can cancel the deal, and the supplier shall pay the Cancellation Fee.

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