UnitTwelveClaimsandSettlementBusinessFocus1.BreachofContractBreachofcontractmeanstherefusalorfailurebyapartytoacontracttofulfillanobligationimposedonhimunderthatcontract.1.1Asellermaybreachacontractfor:DelayorfailureindeliveryInferiorqualityDamagedgoodsWrongdispatchShort-weightChargesandinterestsIncompleteorinadequateshippingdocuments1.2AbuyermaybreachacontractwhereHewronglyrefusestoacceptthegoods;UnderanL/C,hefailstoopentherelevantL/Caccordingtothestipulatedperiod.1.3BothpartiesmaytakeresponsibilityforbreachingacontractwhenTheymisunderstandtheclausesthatarenotclearly;Theybothbreachthecontract.2.ClaimandsettlementClaimreferstotheclaimforlosses.Inthecourseofexecutingacontract,ifonepartyfailstoperformthecontractandthusbringeconomiclosstoanotherparty,thelattermayasktheformerforcompensationaccordingtothecontractstipulations.Settlement(acceptanceofclaim)referstothesettlementofthepartywhoisresponsiblefortheclaimmentionedbythepartysufferingloss.Claimmustbelodgedwithinthetermofvaliditystipulatedinthecontract.Ifitisoverdue,youarenotentitledtodoso.Withregardtoclaimandsettlement,allpartiesconcernedshouldhaveamicable,practicalandrealisticattitude.3.ForceMajeureForcemajeureclauseisexemptingclausewhichstipulatesthatapartyunderaforeigntradecontractisexemptedfornon-fulfillmentofhisobligationstotallyorpartiallyasaresultofconditionsbeyondhiscontrol,suchasearthquake,floodorwar,etc.4.ArbitrationArbitrationisameansofsettlingadisputebetweentwopartiesthroughthemediumofathirdpartywhoisnotpartialtoeitherofthepartiestothedispute,andwhosedecision(arbitralaward)onthedisputeisfinalandbinding.AdvantagesofarbitrationThepartiescanchoosethearbitratorswhoareacquaintedwiththetechnicalorsocialsettingofthedispute.Itislesstime-consuminginsettlingthedisputethrougharbitration.Theprocedureofarbitrationismoreinformalthanthatincourt.Thecostischeaper.Privacycanbemaintained.1.Whenraisingaclaim:Beginbyregrettingtheneedtocomplain;Mentionthedateoftheorder,thedateofdeliveryandthegoodscomplainedabout;Stateyourreasonsforbeingdissatisfiedandaskforanexplanation;Suggesthowthemattershouldbeputright.LanguageFocus2.Whendealingwithaclaim:Thefirstthingistodecidewhethertheclaimisjustified;Ifso,thenyouhavetoadmititreadily,expressyourregretandpromisetoputmattersright.Ifyoucannotdealwithaclaimpromptly,acknowledgeitatonce,andexplainthatyouarelookingintoitandthatyouwillsendafullreplylater;Iftheclaimisnotjustified,pointthisoutpolitelyandinanagreeablemanner.Itwouldbeawrongpolicytorefusetheclaimoffhand.Allclaimsshouldbetreatedasseriousmattersandthoroughlyinvestigated;Thereisnoneedforthesellerstogointoalongstoryofhowthemistakewasmade;instead,ashortexplanationmaybeuseful.WehavejustreceivedtheSurveyReportfromtheShanghaiCommodityInspectionBureauevidencingtheshortweightof1540lbs.Athoroughexaminationshowedthatthebrokenbagswereduetoimproperpacking,forwhichthesuppliersshouldbedefinitelyresponsible.SpecimenLetter:AClaimforShort-weightOnthebasisoftheSCIB’sSurveyReport,weherebyregisterourclaimwithyouasfollows:ForshortdeliveredquantityStg.357.00PlussurveychargesStg.25.00TotalamountofclaimStg.382.00SurveyReportNo.SH(75)735isherewithenclosedandwelookforwardtoyoursettlementatanearlydate.Words&ExpressionsRaise/file/lodge/registeraclaim索赔claimfordamage原因claimforUS$1000金额claimonthegoods货物claimwith/againsttheunderwriter理赔方Settletheclaim理赔settlementEvidence证明Brokenbags破包Soundbags原包Improperpacking包装不当TheEnd