B-95198, JULY 11, 1950, 30 COMP. GEN. 10

B-95198: Jul 11, 1950

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CONTRACTS - DISCOUNTS - BEGINNING OF DISCOUNT PERIOD A DISCOUNT PERIOD GENERALLY IS TO BE CONSIDERED AS BEGINNING TO RUN FROM THE DATE THAT PURCHASED ARTICLES ARE DELIVERED TO THE PURCHASER. SUCH PERIOD IS PROPERLY FOR COMPUTING FROM THE DATE THE SUPPLIES ARE RECEIVED BY THE GOVERNMENT. 1950: REFERENCE IS MADE TO YOUR LETTER OF APRIL 19. THERE WERE INCORPORATED THEREIN THE TERMS: "2 PERCENT. INASMUCH AS PAYMENT FOR THE SUPPLIES WAS MADE ON SEPTEMBER 16. THERE WAS DEDUCTED FROM YOUR INVOICE OF AUGUST 24. YOUR REQUEST FOR REVIEW OF THE SETTLEMENT IS BASED SUBSTANTIALLY UPON THE PREMISE THAT THE DISCOUNT PERIOD COMMENCED TO RUN FROM DATE OF SHIPMENT OF THE ARTICLES FROM YOUR PLANT AT RAVENNA.

B-95198, JULY 11, 1950, 30 COMP. GEN. 10

CONTRACTS - DISCOUNTS - BEGINNING OF DISCOUNT PERIOD A DISCOUNT PERIOD GENERALLY IS TO BE CONSIDERED AS BEGINNING TO RUN FROM THE DATE THAT PURCHASED ARTICLES ARE DELIVERED TO THE PURCHASER, IN THE ABSENCE OF SPECIFIC STIPULATIONS OTHERWISE, SO THAT WHERE A PURCHASE ORDER PROVIDING FOR A DISCOUNT DOES NOT CONTAIN ANY SPECIFIC PROVISION FOR DETERMINING WHEN THE DISCOUNT PERIOD BEGINS, SUCH PERIOD IS PROPERLY FOR COMPUTING FROM THE DATE THE SUPPLIES ARE RECEIVED BY THE GOVERNMENT.

COMPTROLLER GENERAL WARREN TO THE PYRAMID RUBBER COMPANY, JULY 11, 1950:

REFERENCE IS MADE TO YOUR LETTER OF APRIL 19, 1950, REQUESTING REVIEW OF SETTLEMENT DATED APRIL 11, 1950, WHICH DISALLOWED YOUR CLAIM FOR REFUND OF DISCOUNT DEDUCTED IN THE SUM OF $3.72 IN MAKING PAYMENT TO YOU FOR SUPPLIES FURNISHED THE NAVAL SUPPLY DEPOT AT SEATTLE, WASHINGTON, PURSUANT TO PURCHASE ORDER NO. SN-163930-PC, ISSUED BY THE PURCHASING DEPOT ON JULY 15, 1949.

UNDER THE TERMS OF THE SAID ORDER, YOU AGREED TO FURNISH THE NAVAL SUPPLY DEPOT AT SEATTLE ON OR BEFORE AUGUST 18, 1949, WITH CERTAIN DESIGNATED NURSERY SUPPLIES OF A STIPULATED CONTRACT VALUE OF $185.76, AND WITH RESPECT TO THE DISCOUNT OFFERED, THERE WERE INCORPORATED THEREIN THE TERMS: "2 PERCENT--- 10, NET 30 DAYS.' INASMUCH AS PAYMENT FOR THE SUPPLIES WAS MADE ON SEPTEMBER 16, 1949, OR WITHIN SEVEN DAYS AFTER RECEIPT OF THE SUPPLIES AT SEATTLE ON SEPTEMBER 9, 1949, THERE WAS DEDUCTED FROM YOUR INVOICE OF AUGUST 24, 1949, THE TWO PERCENT DISCOUNT OFFERED BY YOU, OR $3.72.

YOUR REQUEST FOR REVIEW OF THE SETTLEMENT IS BASED SUBSTANTIALLY UPON THE PREMISE THAT THE DISCOUNT PERIOD COMMENCED TO RUN FROM DATE OF SHIPMENT OF THE ARTICLES FROM YOUR PLANT AT RAVENNA, OHIO, ON AUGUST 24, 1949, AND NOT FROM DATE OF RECEIPT OF THE ARTICLES ON SEPTEMBER 9, 1949, AT THE DESTINATION POINT SPECIFIED AND, THEREFORE, YOU CLAIM THAT THE DISCOUNT DEDUCTED WAS NOT EARNED.

GENERALLY, AND IN THE ABSENCE OF SPECIFIC STIPULATIONS OTHERWISE, A DISCOUNT PERIOD IS TO BE CONSIDERED AS BEGINNING TO RUN FROM DATE THE PURCHASED ARTICLES ARE IN FACT DELIVERED TO THE PURCHASER AS DISTINGUISHED FROM CONSTRUCTIVE DELIVERY BY DELIVERY TO A CARRIER, OTHERWISE A PURCHASER WOULD BE PLACED IN THE POSITION OF BEING REQUIRED IN ORDER TO OBTAIN THE DISCOUNT TO PAY FOR THE ARTICLES WITHOUT KNOWING IN FACT WHETHER THE ARTICLES SHIPPED ARE THE ARTICLES PURCHASED. TIME MUST BE ALLOWED TO RECEIVE THE ARTICLES AND EXAMINE THEM. CONSEQUENTLY, PAYMENT IS NOT AUTHORIZED TO BE MADE FOR SUPPLIES DELIVERED TO THE GOVERNMENT UNTIL SUCH SUPPLIES HAVE BEEN INSPECTED AND ACCEPTED AS CONFORMING TO THE TERMS OF THE CONTRACT AND DISCOUNT IS THEREUPON PROPERLY FOR TAKING IN THE ABSENCE OF SPECIFIC STIPULATION AS STATED. 14 COMP. GEN. 721. SINCE THE PURCHASE ORDER HERE INVOLVED CONTAINED NO SPECIFIC STIPULATION PROVIDING FOR THE RUNNING OF THE DISCOUNT PERIOD FROM DATE OF DELIVERY OF THE SUPPLIES TO CARRIER, THE DISCOUNT PERIOD WAS PROPERLY COMPUTED FROM THE DATE OF DELIVERY OF THE SUPPLIES AT THE DESTINATION POINT.