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Unit 7 Learning Objectives Learn the importance of Commodity Inspection Be aware of the time and place for Inspection Be aware of the liabilities of breach of contract Understand Claim Clause in Contract Understand the definition and the consequences of Force Majeure Understand the definition and the characteristics of Arbitration Learn the importance and contents of arbitration agreement or clause Inspection, Claim, Force Majeure and Arbitration In international trade practice, inspection is considered to be absolutely necessary in the process of commodity transportation. The buyer’s right of inspection is clearly stipulated in laws or regulations of various countries. Actually, to clarify the responsibilities between the seller and the buyer, inspection clauses are usually stipulated in the contract. If there is a dispute arising from breach of contract by either of the seller or the buyer, claim clauses are involved in contract. However, if the breach of contract results from Force Majeure, the party concerned is supposed to be excluded from the responsibility. In this case, whether an event is Force Majeure should be ascertained in the contract beforehand. When both parties have different views on some cases or clauses and any party shirks liabilities intentionally, arbitration by a third party is required. Contents Section 1 It is quite often the case that export and import cargoes are subject to damage or shortage in transit because of rough handling and unloading, and the long distance they are traveling. Besides, the quality and quantity of the cargo received by the buyer may not be in with that stipulated in the contract. Disputes whereby can be hardly avoided. In order to find out the right party responsible for the dispute, inspection of commodity and the issuance of certificate of inspection are necessary. Section 1 Usually, export and import commodity inspections are carried
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