Claim Letter

A Claim Letter is a formal written document in international trade used by the buyer or seller to demand compensation from the other party for losses suffered due to breach of contract or goods not conforming to the contract. Usage scenarios include: goods quality, quantity, packaging not conforming to the contract; delayed delivery; refusal to pay; document discrepancies, etc. Precautions: The claim letter should be sent within the claim period stipulated in the contract, and attached with inspection reports, photos, documents and other evidence; the wording should be rigorous, well-founded, clearly stating the claim amount and solution; also note the difference from a 'Discrepancy Letter'—the latter is usually used to notify document discrepancies under a letter of credit, while a claim letter focuses on compensation for losses. The difference from a 'Settlement Letter' is that a claim letter makes a demand, while a settlement letter responds to and handles the claim.