国际经济与贸易英语：chapter 9Claims, Force Majeure and Arbitration

1、 Objective 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 Realize the importance of arbitration in the settlement of disputes and claims Describe the ways of

2、 stipulating an arbitration clause in a sales contractChapter 9: Claims, Force Majeure and Arbitration In intl trade, complaints and claims from the customers, and disputes between the buyers and the sellers may arise although the two parties work very carefully in the performance of a contract. Som

3、etimes they even submit their disputes to arbitration. However, many intl contracts require that negotiation or mediation be used before any formal process is used, and mediation is the process preferred by many parties. Whichever process is chosen, the contract should also choose the forum or tribu

4、nal (论坛或法庭论坛或法庭) and the governing law. Chapter 9: Claims, Force Majeure and Arbitration 9.1 Claims In intl trade, disputes arise from time to time for various reasons, for instance, a buyer may breach a contract by refusing to accept goods with improper reasons or failing to pay for the goods when

5、payment is due; a seller may violate a contract by failing to make an agreed delivery, delivering goods that do not conform to the contract. When disputes arise, the injured party usually will lodge a claim against the party concerned for compensation. Thus, claim can be defined as a demand made by

6、one party upon another for a certain amount of payment on account of a loss sustained through its negligence. Therefore, to avoid or to properly handle future disputes, it is necessary to include a claim clause in a contract. Normally, there are two ways to stipulate claim clause in a contract: Disc

7、repancy and Claim Clause (异议、索赔条款异议、索赔条款) Penalty Clause (罚金条款罚金条款)9.1 Claims9.2 Force Majeure After the conclusion of a contract, some events beyond the parties control may occasionally take place, which makes it impossible for the parties concerned to fulfill the contract. In order to safeguard th

8、eir interests, the parties of the contract usually stipulate a Force Majeure Clause in the Sales Contract. Force Majeure, also called Act of God, is an event that can be neither anticipated nor reduced to control. Force Majeure events enable a seller to avoid his contractual obligations without payi

9、ng a compensation or penalty. A force majeure clause may excuse performance on the occurrence of such events as: Natural disasters (自然灾害自然灾害) Like flood, storm, heavy snow, earthquake Social disturbances (社会力量如动乱社会力量如动乱) Like war, strike, sanctions (trade sanctions) Performance failures (无法履行责任无法履行责

10、任) Disruption in telephone service, labor disputes, government restriction There are usually two consequences of force majeure: To cancel the contract (终止合同终止合同) To postpone execution of the contract (中止合同中止合同)9.2 Force Majeure9.3 Arbitration In intl trade practice, when disputes arise between expor

11、ters and importers, it can be settled through negotiation, mediation, arbitration or litigation. (协商，调解，仲裁，诉讼协商，调解，仲裁，诉讼) Friendly negotiation or mediation is the best method of all and beneficial to both parties. If the disputes cannot be settled through amicable negotiation or mediation, arbitrati

12、on turn to be the next best alternative, as litigation is usually costly and time-consuming. It is necessary to note that, under arbitration, fees can be borne by the losing party of the dispute, and the arbitral award is final and binding upon both parties. 谢谢！请看下一章Homework: I. Choices1. The disagr

13、eement resulted from one party of a transaction totally or partially unable to perform the obligation and liability stipulated in the contract is _. A. claim B. dispute C. breach of contract D. settlement of disputes 2. Which of the following may possible result in disputes? _A. breakage of the pack

14、ageB. rising of price C. fluctuation of exchange rate D. quote 3. Which of the following is a clause in a contract and meanwhile a low itself? A. arbitration B. claim C. dispute D. force majeure4. The main arbitration body in China is _. A. MOFTEC B. CCPIT C. CIETAC D. ICC5. According to usual pract

15、ice, the penalty of a contract shall not exceed _of the total value of the goods. A. 3%B. 4%C. 5%D. 5.5%6. Force majeure clause is a clause that _. A. protects the right of the seller B. protects the right of the buyer C. enables the seller to avoid his contractual obligation D. enable the buyer to

16、avoid his contractual obligation7.After a dispute, in case that the parties concerned are unable to reach an agreement, they can ask a third party to help settle the dispute, this action is called _. A. negotiation B. mediationC. arbitrationD. litigation 8. Before going for arbitration, both parties

17、 involved in a dispute needs to make an arbitration agreement in written form, in which they agree to refer the subject in dispute to a third party. This indicates the _ nature of arbitration. A. flexibleB. simplified C. compulsory D. voluntary 9. The award of arbitration is final and binding on bot

18、h parties. This shows the _. A. flexibleB. simplified C. compulsory D. voluntary 10. The best way to stipulate the place and time of inspection is _. A. inspection at the factory B. inspection at the port of shipment C. inspection at the port of destination D. inspection at the port of shipment and

19、re-inspection at the port of destination II. True or false statements. 1. _ Reasons resulting in disputes in intl trade can be classified into three categories: breach of contract by the seller, breach of contract by the buyer and breach of contract by both the seller and the buyer. 2. _ One of the

20、ways to stipulate period for claim is : “Claim should be filed within 90 days after shipment”.3. _ The best way to stipulate force majeure events in the force majeure clause of a contract is to stipulate them in a synthesized way. 4. _ The arbitration award is final and binding on both parties, therefore should be executed without any doubt. 5. _ There are two main types of arbitration body: governmental and non-government. 6. _ Inspection on import an