Legal Definitions - good delivery

Good delivery refers to the successful and legally compliant transfer of an item, such as goods, securities, or documents, from one party to another. For a delivery to be considered "good," it must meet all specified contractual terms, legal requirements, and industry standards. This ensures that the recipient receives exactly what was agreed upon, in the proper condition, and with all necessary accompanying documentation or endorsements, making the transfer legally valid and effective.

Here are some examples illustrating the concept of good delivery:

• Commercial Shipment: A clothing retailer orders 500 units of a specific style of jeans from a manufacturer. For this to be a good delivery, the manufacturer must ship the correct quantity (500 units), the correct style and size assortment, and ensure the jeans arrive undamaged at the retailer's specified warehouse. Furthermore, the shipment must include all necessary documentation, such as the packing list and invoice, allowing the retailer to verify the order and legally take possession of the goods.

• Transfer of Securities: An individual sells 100 shares of a publicly traded company. For the transfer of these shares to be a good delivery, the seller must provide the stock certificates (if physical) or instruct their broker to transfer the shares electronically, ensuring they are properly endorsed (if physical), registered in the correct name, and free from any liens or encumbrances. All necessary paperwork must be completed accurately to allow the buyer to legally become the new owner of those 100 shares without any issues.

• Real Estate Transaction: During the closing of a home sale, the seller is obligated to provide a deed that legally transfers ownership to the buyer. For this to be a good delivery of the deed, it must be the original document, correctly signed by the seller, properly notarized, accurately describe the property, and be free of any errors or defects that could challenge the buyer's clear title. The deed must then be physically or electronically conveyed to the buyer (or their legal representative) in accordance with the closing procedures, enabling the buyer to record their new ownership.