Cargo Claim
What Do You Know If Shipment Lossed or Damaged
Cargo Claim Overview
Cargo Claim refers to that in international trade, one party breaks the contract and causes losses or damages to the other part directly or indirectly, the injured party may ask for compensation for the losses or damages.
It is necessary to include a discrepancy and claim clause in a contract. In case the goods delivered are inconsistent with the contract stipulations, the buyer should make a claim against the seller within the time limit of reinspection under the support of an inspection certificate or survey report issued by a nominated surveyor.
On the Basis of Terms and Conditions of the Contract
- There are two types of undertakings entered into in every sales contract.
- The more important one of the two types is called a condition which is a clause associated with the essence of the contract. This clause actually goes to the root of the contract. If one party breaks a condition, he will break the foundation of the contract and leads to an action for fundamental breach of the contract.
- The less important types of undertaking is called a warranty. Since a warranty does not go to the root of the contract, the injured party can not cancel the contract, but he is entitled to be compensated for breach of warranty.
On the Basis of Consequence of Breach of Contract
- If one party breaks the contract and makes the other party unable to obtain the main profit, then this is called "material breach". In this case, the injured party has the right to cancel the contract. Meanwhile, he may also ask for compensatin for losses.
- If one party breaks the contract, but the case is not so serious and the other party will not lose any main profit, this is called "minor breach". In this case, the injured party can not cancel the contract. However, he may ask for compensation for losses.
- In "United Nations Convention on Contracts for the International Sales of Goods", these two undertakes are termd fundamental breach and non-fundamental breach.
Claim Clause in the Contract
- Clause in respect of claim in an import and export contract can be fixed as follows:
|
