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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 ? Inspec
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