CLAIMS AND SANCTIONS

A contract defines rights and obligations of the parties inIn case of breach of contract the sufferer makes a claim on the party which fails to meet its contract obligaIt is more often the case that it is the Buyer who makes a claim on the Seller. Most of-ten the Buyer makes quality and quantity claims on the Seller. The cause for commay be poor quality, breakage, damage, short weight etc.

The Buyer must write a statement of claim and mail it to the Seller together with the supporting documents. Bill of Lading, Airway and Railway Bill, Survey Report, Quality Certificate may serve as documentary evidence. If necessary, drawings, photos, samples are enclosed as proofs of claims.

The date of a complaint is the date on which it is mailed.

Claims can be lodged during a certain period of time, which is usually fixed in a Contract. During the claim period the Seller is to enquire into the case and communicate his reply. He either meets the claim or decliit.

The Seller declines liability if the B/L is "clean", that is the shipping company hasn't made any remarks about the quantity or condition of the cargo shipped.

The Seller has also a full right to decline a claim if the goods are disorderly stored, mishandled or misused by the Buyer.

If a claim has a legitimate ground behind it the parties try to settle it amicably.

In case of short-weight it is recompensed by a load sent seor at the time of follow-up shipments. In case of damage or faults, the goods at the Buyer's option can be repaired or replaced, all at the Seller's expense.

Sometimes if deviation in quality is within certain limits the goods can be retained but with an allowance proportionate to the discrepancy in quality. This is usually the case with raw materials, foodstuffs or any other goods sent in bulk.

If the goods are missing the Seller must necessarily locate them. Sometimes it is quite a problem as consignments may be lost when transshipped at some intermediate port or if sent at a wrong address. If the goods are not recovered compensation must be paid by the party directly responsible for it.

The Seller in his turn is entitled to make a claim on his counif the Buyer fails to meet his contractual obligations.

The Seller may inflict penalties on the Buyer if there is a dein payment.

Financially, legitimate claims are in large part settled by debit or credit notes.