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Delivery and Acceptance D&A
Also called delivery and acceptance certificate, acceptance certificate, certificate of acceptance, DAC.
The document confirming that equipment was delivered and is acceptable, which releases payment to the vendor, starts the lease clock, and in most agreements ends your ability to withhold payment because the equipment does not work.
Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.
What it means
In a lease or equipment finance agreement the funder buys what you selected from a vendor you chose. It has no view on the machine, does not inspect it, and disclaims every warranty. The one thing it needs before parting with money is your confirmation that the equipment arrived and is satisfactory. That confirmation is the delivery and acceptance certificate.
What signing it does
- Releases the funder's payment to the vendor
- Fixes the acceptance date, which drives the commencement date and any interim rent
- Triggers the start of the payment schedule and the insurance obligation
- Activates the unconditional payment covenant, often described as hell-or-high-water: rent is due regardless of the equipment's condition, performance or subsequent destruction
What is usually on it
Identification of each item by make, model and serial number; confirmation that it has been delivered, installed and inspected; confirmation that you selected the equipment and the vendor; acknowledgment that the funder makes no warranties and that your remedies for defects lie against the vendor and the manufacturer; and frequently a waiver of defences against the funder.
Verbal verification
Many funders complete a recorded phone call instead of, or as well as, the signed page. The call asks whether the equipment has been delivered and is working. Your answer on that call is the acceptance. Treat it with the same care as a signature.
Where this one catches people
The pressure to sign early is structural and it is not personal. The vendor is not paid until you accept, so the salesperson wants the certificate the moment the crate arrives, and will describe it as a formality to release the order, or as needed to hit a delivery deadline, or as something that can be undone if there is a problem. It cannot be undone.
Sign after installation, after commissioning, after you have run the machine on your own work, and after any training that was part of the deal. Until then you hold the only practical remedy you will ever have against the vendor: their money. Afterwards, your obligation runs to a funder who did not build the machine, disclaims all warranties, and expects payment whether or not it works.
If a verbal verification call comes before installation is complete, say so on the call and say exactly what remains outstanding. The call is recorded, which cuts both ways.
Where you will meet this term
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Delivery and Acceptance — common questions
What does delivery and acceptance mean?
The document confirming that equipment was delivered and is acceptable, which releases payment to the vendor, starts the lease clock, and in most agreements ends your ability to withhold payment because the equipment does not work.
Where does delivery and acceptance catch people out?
The pressure to sign early is structural and it is not personal. The vendor is not paid until you accept, so the salesperson wants the certificate the moment the crate arrives, and will describe it as a formality to release the order, or as needed to hit a delivery deadline, or as something that can be undone if there is a problem. It cannot be undone.
Is delivery and acceptance the same as an interest rate?
Delivery and Acceptance is defined above; if you are comparing it against a rate, check whether the two measures share a time dimension before you put them side by side.
Which products does delivery and acceptance apply to?
Equipment Financing.
Is there a worked example of delivery and acceptance?
Not on this entry. Where a term is arithmetic, the arithmetic is shown; this one is not primarily a calculation.
What else should I read alongside delivery and acceptance?
Certificate of Insurance, Equipment finance agreement, Equipment lease, Funding date, Hold harmless clause.
Has this definition been checked?
Not yet. This entry is drafted and live, and the notice at the top says so. Confirm anything you are about to act on.
Is this legal advice?
No. It is a definition. What a clause does in your contract, in your state, is a question for a lawyer licensed where you are.
Can I suggest a term?
Yes — [email protected]. The glossary grows from what people are actually shown in contracts.