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* Chapter 11 Claims, Force Majeure and Arbitration claims A demand made upon a person or persons for payment on account of a loss sustained through its negligence. Genuine complaints False complaints Ways to Settle a Claim Make refund Compensate for other direct losses or expenses Sell the goods at lower prices Replace the faulty goods with perfect ones. Force Majeure That part of a contract which cannot be performed due to causes which are outside the control of the parties and could not be avoided by the exercise of due care. This includes an act of God which is defined as an act, event, happening, or occurrence, due to natural causes and inevitable accident, or disaster; a natural and inevitable necessity which implies entire exclusion of all human agency which operates without interference or aid from man and which results from natural causes and is in no sense attributable to human agency. This clause states that the parties shall not be liable for failure to perform its obligations under the agreement due to causes out of their control and is based on the concept that parties to an agreement desire to protect themselves from risks posed by unpredictable events. The following sample clause specifically mentions the possibilities of mechanical, electronic, or communications failure, which are particularly important in the electronic age:Force Majeure. No party shall be liable for any failure to perform its obligations in connection with any action described in this Agreement, if such failure results from any act of God, riot, war, civil unrest, flood, earthquake, or other cause beyond such partys reasonable control (including any mechanical, electronic, or communications failure, but excluding failure caused by a partys financial condition or negligence). arbitration The resolution of a dispute between two parties through a voluntary or contractually required hearing and determination by an impartial third party (arbiter/arbitrator). The choice next
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