Settlement Standard

Settlement Standard refers to the criteria stipulated in foreign trade contracts for determining the liable party, compensation amount, and handling methods when goods suffer loss, damage, or quality discrepancies. It typically appears in insurance clauses, quality guarantee clauses, or breach of contract clauses, and involves scenarios such as insurance claims, carrier liability, and negotiation between buyer and seller. When using this term, note: 1) Clarify the trigger conditions for claims (e.g., cargo damage ratio, inspection period); 2) Agree on the basis for calculating compensation (e.g., invoice value, CIF price, replacement cost); 3) Distinguish between insurance claims (based on the policy) and commercial claims (based on the contract); 4) Use in conjunction with terms such as 'claim period' and 'inspection standard' to avoid ambiguity. Unlike 'claims procedure,' settlement standard focuses on substantive rules (how much to pay, who pays), while procedure focuses on process steps. In practice, it is recommended to reference international conventions (e.g., Hague Rules, Hamburg Rules) in the contract or specify the inspection agency to reduce disputes.