,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,SEIB of GDUFS,*,单击此处编辑母版标题样式,单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,SEIB of GDUFS,*,Chapter Nine,Inspection,Claim,Force Majeure and Arbitration,Learning objectives,After reading this chapter,you should be able to,explain ways to stipulate the place and time of inspection within the contract,understand the conditions for breach of contract and settlement of claims,describe ways of stipulating claim clauses in a sales contract,be aware of the consequences of force majeure events,explain ways to stipulate force majeure clauses in a sales contract,realize the importance of arbitration in the settlement of disputes and claims,be aware of the issues to be considered in the negotiation of arbitration,describe the ways of stipulating an arbitration clause in a sales contract,SEIB of GDUFS,2,9.1 Commodity Inspection,Commodity inspection is the inspection conducted by an authorized third party to testify whether the quality,quantity,weight,package,etc.are the same as those specified in the contract.,SEIB of GDUFS,3,9.1.1 Time and place of inspection,Inspection at the factory or at the port of shipment(also,shipping quality and weight,),The goods are inspected at the factory or at the port of shipment,Inspection results considered final for the delivery of the goods by the seller,Buyer can re-inspect the goods but the result will not serve as the basis for compensation,More favorable to the seller,SEIB of GDUFS,4,9.1.1 Time and place of inspection,Inspection at the port of destination(also,landed quality and weight,),The goods are inspected at the port of destination,Inspection results considered final for the delivery of the goods by the seller,Buyer can claim for compensation in the case of discrepancies,More favorable to the buyer,SEIB of GDUFS,5,9.1.1 Time and place of inspection,Inspection at the port of shipment and re-inspection at the port of destination,The goods are inspected at the port of destination and re-inspected by the buyer at the port of destination,Inspection results issued at the port of shipment are used as one of the documents for the seller to settle payment,Inspection results issued at the port of destination serve as the basis for the buyer to claim for compensation in the case of discrepancies,Favorable to both the seller and the buyer,SEIB of GDUFS,6,9.1.2 Inspection Bodies,Types of inspection body,Governmental inspection bodies,Owned and supervised by governments,Specialize in inspection of particular commodities or those subject to mandatory inspection,eg.The Food and Drugs Administration(FDA)in USA,The State Administration for Commodity Inspection(SACI)in China,Non-governmental inspection bodies,Privately owned,Enjoy the same legal status,Eg.Societe Generable De Surveillance S.A.(SGS)in Swiss,Lloyds Surveyors in Britain,Underwriters Laboratories(UL)in USA.,SEIB of GDUFS,7,9.1.2 Inspection Bodies,Tasks of the inspection body,To inspect goods for import and export,Statutory inspection:for mandatory inspection,Non-statutory inspection:made on a random basis,To exercise supervision and control over the inspection,To accept the entrustment for surveying services and issue certificates of survey,SEIB of GDUFS,8,9.1.3 Inspection Standard,Standards,Mandatory inspection:subject to the standards as specified in the Law and the Regulations,For others,subject to the standards agreed upon in the trade contracts,If there is contradiction between the standards in the Law and the Regulations and those in the contracts,subject to the higher one.,If the standards are not specified in the Law and the Regulations or in the contract,subject to the standards of the manufacturing country,or relevant international standards or the standards designated by the state inspection agency.,SEIB of GDUFS,9,9.1.4 Inspection Certificate,Inspection Certificate of Quality,Inspection Certificate of Weight or Quantity,Inspection Certificate of Value,Inspection Certificate of Origin,Sanitary Inspection Certificate,Veterinary Inspection Certificate,Disinfection Inspection Certificate,Inspection Certificate on Damaged Cargo,SEIB of GDUFS,10,9.1.5 Inspection clause,The inspection clause usually contains stipulations on,the inspection right,the time and place of inspection or re-inspection,the inspection body,the inspection items and,the inspection certificates.,SEIB of GDUFS,11,9.1.5 Inspection clause,Example,SEIB of GDUFS,12,9.2 Disputes and Claims,9.2.1 Disputes,Main reasons for disputes,breach of contract by the seller,fails to deliver the goods,fails to present required documents,breach of contract by the buyer,fails to open L/C,fails to accept the goods,fails to dispatch the vessel(FOB),breach of contract by both parties,misunderstands contract stipulations,SEIB of GDUFS,13,9.2.2 Claims,Claim:demand made by one party to another for a certain amount of compensation on account of a loss sustained through its negligence,Types of claim,claim regarding selling and buying,claim regarding transpo