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Unit 9 Handling Disputes Closing the deal Time to finalize the contract Necessary to know what could happen during execution of the contract Complaints (投诉) Complaints often arise due to problems in execution of a contract Common complaints: wrong goods delivered quality problems delayed shipment delay of payment(cash flow) damaged goods during delivery How to handle complaints or claims Obligations should be defined as clearly as possible in the contract Friendly negotiation友好协商 All disputes shall be settled through friendly negotiation first Find a reasonalbe way to make a claim 1) state the problem clearly 2) tell the other party how you are inconvenienced 3) Ask for a reasonable demand to satisfy your claim Arbitration Finalizing sales contract Heading: title, number, place, date, parties, addresses Body: Essential Terms 1) commodities, quality, quantity,packing 2) Price (unit price, total value) 3) Shipping and delivery terms etc 4) Payment terms 5) Insurance Additional Terms Claims Clause Arbitration Clause Force Majeure Clause Ending Claims (索赔) a demand for something as rightful or due Should give the reason Should indicate the amount Inspection certificate Certificate of Loss or Damage Sample Claims Clause Any claim relating to either the quality or quantity of the goods delivered by the Seller to the Buyer in accordance with the present contract must be submitted by the Buyer to the Seller no later than X days from the date of delivery of the goods indicated in the transport document. All claims must be submitted in writing and include originals of any documentation upon which the claim is based (including, but not limited to documentation issued by independent inspectors, Chamber of Commerce, authorised Government agencies, etc.) Arbitration 仲裁 It is the final decision over a dispute case, and is conducted by an appointed (neutral) committee If Arbitration is
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