Contract Quality Guarantee Parameter refers to the specific technical indicators or numerical ranges expressly stipulated in an international trade contract to measure whether the quality of goods meets the agreed standard. It usually appears in the quality clause and constitutes the seller's commitment to the quality of the goods, as well as the basis for the buyer's acceptance and claims. Use scenarios include: grade, purity, and moisture content of bulk commodities (such as ore and chemicals); power, precision, and service life of mechanical and electrical products; protein content and pesticide residues of agricultural products. Notes: the parameters must be quantifiable and testable, and the testing method, sampling standard, and tolerance range shall be agreed upon; if the parameters fail to meet the standard, the contract shall provide remedies (such as price reduction, rejection, or compensation). Difference from other terms: it is different from a 'quality description' (qualitative description) and also different from a 'specification sheet' (a broader technical document); rather, it is a specific numerical indicator with legal binding force in the contract. Foreign trade practitioners need to ensure that the parameters are consistent with the letter of credit and inspection certificates to avoid disputes caused by differences in standards.
📝 Examples
1. The Contract Quality Guarantee Parameters for iron ore under this contract are: iron content not less than 62%, sulfur content not more than 0.05%, and moisture content not more than 8%. (Note: Key indicators are clearly listed as mandatory standards for the seller's delivery and the buyer's acceptance.) 2. If the goods delivered by the seller fail to meet any one of the Contract Quality Guarantee Parameters, the buyer has the right to request a proportional price reduction or reject the goods, and reserves the right to claim compensation. (Note: The parameters are linked to remedies for breach of contract, emphasizing their legal binding force.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
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