Settlement Basis

Settlement Basis refers to the core documents or evidence used in handling claims and settlements in international trade. It includes contract terms, inspection reports, bill of lading remarks, insurance policies, correspondence, etc., used to determine liability and calculate compensation amounts when disputes arise over cargo damage, cargo shortage, delayed delivery, quality non-conformity, etc. Usage scenarios: the buyer must specify the basis when filing a claim; the seller must verify whether the basis is sufficient when reviewing claims; insurance companies also rely on this basis for loss assessment. Precautions: the basis must be authentic, complete, and timely, and must comply with the inspection standards and time limits stipulated in the contract; if the contract specifies that a third-party inspection agency's report shall prevail, then unilaterally issued certificates are invalid. Distinction from other terms: Settlement Basis focuses on 'what justifies the compensation,' while the Claim Clause focuses on 'how to compensate and how much'; unlike a 'Force Majeure Certificate,' which is used for exemption from liability, the former is used for determining liability. Mastering this term helps efficiently resolve disputes and avoid losing cases or delays due to insufficient basis.