Complaints and Adjustment Arbitration
Classification o o o Complaints that the wrong goods were sent. The entire consignment may contain the wrong merchandise, or just one or two cases were wrongly packed. Complaints that not enough goods, or too many goods were sent. Complaints about bad, inferior or inadequate packing.
Classification (continued) o o o Complaints about the quality of the merchandise. The goods may be of inferior quality, or they may not be what the buyer expected. These are two different matters. Complaints about delay. This may be covered by a penalty clause. Complaints about damage. This is usually a matter for the insurance agent.
The Buyer’s faults o o Refusal to accept the goods without sufficient grounds or causing difficulties by omitting to give transport instructions in time. The Buyer refuses to pay though he has already accepted the goods. In such a case it is necessary to force payment by sending reminders.
The Seller’s counteraction o o In such cases the Seller may store the goods at the Buyer’s expense, or he is free to dispose of them after a certain period of time and claim damages if he has to sell the goods at a lower price. In such a case it is necessary to force payment by sending reminders.
Liquidated Damages Liquidated damages are an agreedupon amount of money that parties to a contract promise to pay if one of them breaches the contract
Liquidated Damages o o The amount of liquidated damages must be roughly equal to the amount that the party who is owed the damages will lose due to the breach of contract, and The damages must be uncertain enough that the liquidated damages clause saves both parties substantial time and money in figuring out the actual damages amount.
Liquidated Damages Clause o Should the delivery of the goods be delayed against the dates stipulated hereby, the Seller pays the Buyer liquidated damages at the rate of 0, 5% of the value of the goods overdue in delivery for every full calendar week of delay for the first four weeks, and at the rate of 1% for every following calendar week of delay. The total amount of liquidated damages should not exceed 5% of the value of the goods delayed in delivery. When calculating the damages, the number of days making up of four or more days will be considered as a full calendar week. If the delay in delivery exceeds 6 months, the Buyer has the right to cancel the non-fulfilled part of the Contract without any compensation of the Seller's expenses or losses sustained in cancellation. In this case the Seller shall pay to the Buyer 5% penalty for delay in delivery and shall return back immediately all the amount paid under the present Contract. The rate of agreed and liquidated damages is not subject to alteration by Arbitration. The Seller is to pay it immediately at the first Buyer's request.
Arbitration o o o the Geneva Protocol of 1923, the Geneva Convention of 1927, and the New Work Convention of 1958
Advantages o o simplicity, speed, economy and the avoidance of publicity
Arbitration Clause All disputes arising in connection with the present contract shall be finally settled under the Rules of Conciliation and Arbitration of the International Chamber of Commerce by one or more arbitrators appointed in accordance with the Rules
Some terms o o o o arbitration clause – a statement in a contract which indicates that both parties agree to arbitration in the event of a dispute award – the decision of the arbitrators bona fide – in good faith, therefore honest, genuine, sincere litigation – court action misrepresentation – falsehood review – a check by a court to see that the decision of an arbitration tribunal is carried out statutory – having to do with law
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