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ChapterTenClaimsandArbitration10.1Claims10.2Arbitration
10.1Claims
10.1.1IntroductionAtrade-relatedclaimisalegaldemandorassertionbyonepartyforcompensation,payment,orreimbursementforalossordamageincurredduetothenegligenceorbreachofthecontracttermscommittedbytheotherparty.Thecontentsofacomplaintarenotonlypricereduction,contractavoidanceandcompensationfordamage,butalsoincludediscrepancies,arguments,anddisputes.
Becauseofthewiderangeofpossibleclaims,itisimportanttooutlinewhatclaimsareacceptableunderthecontract,andhowtheclaimsaretobemade.Creatingaclearpathforclaimsisnecessary,particularlyfortheriskmanagementininternationaltrade.Thispathshouldclearlyspecifytheperiodoftimetopresenttheofficialclaim,causesforwhichclaimsaretobebrought,andhowtobringaclaim.Onetypeofclaimsthatcouldtakeanexporterbysurpriseistermedthe“marketclaim”.Thisistheclaimthattheimporterasksfordamagecompensationostensiblyduetoonlyminordiscrepanciesinproductsdeliveredfromthosecontracted,buttherealcauseoftheclaimisadecreaseinthemarketpriceoftheimportedproducts.
Thebuyerinspectsthegoodstoensurethattheyareinaccordancewiththecontractandcleardiscrepanciesarenotfound.Ifanydiscrepancyisfoundorthedeliveredquantityisshortofthecontractedquantity,thebuyershouldnotifytheproblemtothesellerimmediately.Theinspectionandnotificationarethebuyer’sobligation.Ifheneglectsthisprocess,helosestherighttomakelegalclaims.
Itisadvisablethatthebuyerinspectgoodswithinasshortaperiodashecanasfarascircumstancespermit.Ifhefailstosendnotificationwithinareasonableperiodoftimedespiteadiscrepancy,helosestherighttoclaim.
Countlessaspectsofbusinessdealingscanbreakdown,butthemostcommoncausesforclaimsare:
?Anincorre
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