Chapter 11.

Claims, Force Majeure and Arbitration In This Chapter

11.1 Claims 11.2 Force Majeure 11.3 Arbitration

11.1 Claims
j 1.Claims Claim: a demand made upon a person or persons for payment on account of a loss sustained through its negligence. j 2. Penalty Clause Penalty Clause: a clause included in the contract in case one party fails to implement the contract such as non-delivery, delayed delivery, delayed opening of L/C. Under this clause, the party who has failed to carry out the contract must pay a fine, a certain percentage of total contract value.

11.1 Claims
j 3. Inspection and Claim Clause in Contract: It is mutually agreed the Certificate of Quality and Weight(Quantity) issued by the China Import and Export Commodity Inspection Bureau at the port of shipment shall be part of the documents to be presented for negotiation under the relevant L/C. The Buyers shall have the right to reinspect the quality and weight (quantity) of the cargo. The reinspection fee shall be borne by the Buyers. Should the quality and/or weight (quantity) be found not in conformity with that of the Contract, the Buyers are entitled to lodge with the Sellers a claim which should be supported by survey reports issued by a recognized surveyor approved by the sellers. The claim, if any, shall be lodged within 30days after arrival of the cargo at the port of destination.

11.2 Force Majeure

j 1. Definition Force Majeure: also called Act of God, is an event that can be neither anticipated nor reduced to control, e.g., an industrial strike that leads to loss of profits, or a war destroying a whole cargo, or some others of the kind.

11.2 Force Majeure

j 2. Force Majeure clause: If the shipment of the contracted goods is prevented or delayed in whole or in party by reason of war, earthquake, flood, fire, storm, heavy snow or other causes of Force Majeure, the seller shall not be liable for non-shipment or late shipment of the goods or non-performance of this contract. However, the seller shall notify the buyer by cable or telex and furnish the latter by registered airmail with a certificate issued by the China Council for the Promotion of International Trade attesting such event or events.

11.3 Arbitration

j Conciliation j Arbitration j Litigation

11.3 Arbitration
j Arbitration:

the resolution of a dispute between two parties through a voluntary or contractually required hearing and determination by an impartial third party.

11.3 Arbitration
j Organizations:  International Chamber of Commerce (ICC),
Paris, France; its web: www.iccwbo.org.

 American Arbitration Association, 140, West 51st Street, New York, NY10020 USA.  China International Economic and Trade Arbitration Commission, its web: www.cietac.org.cn.

11.3 Arbitration
j Arbitration Clause : All disputes in connection with this Contract or the execution thereof shall be settled by negotiation between two parties. If no settlement can be reached, the case in dispute shall then be submitted for arbitration in the country of defendant country. The decision made by the arbitration organization shall be taken as final and binding upon both parties. The arbitration expenses shall be borne by the losing party unless otherwise awarded by the arbitration organization.

11.3 Arbitration
j General Arbitration Procedures: Submit dispute to arbitration Appoint arbitrators Hear a case Issue an award