Contract Quality Liability

Contract Quality Liability refers to the legal liability borne by the seller in international sales of goods when the delivered goods do not conform to the quality standards stipulated in the contract. Its core lies in 'conformity with contractual provisions,' rather than merely meeting general standards. It is commonly encountered in quality disputes under trade terms such as FOB and CIF, for example, when the buyer claims compensation on the grounds that the goods do not match the sample or specifications. Points to note include: clearly defining quality clauses (such as by sample, by specification, by standard), reasonably stipulating the inspection period and claim validity period, and distinguishing between fundamental breach and general breach. Differences from other terms: unlike 'Product Liability,' which involves damage caused by a product to persons or property and falls under tort law; it is similar to 'liability for warranty against defects,' but the latter emphasizes the seller's warranty against latent defects. Foreign trade practitioners should specify quality requirements, inspection institutions, and dispute resolution methods in the contract to reduce risks.