In foreign trade, 'Remedy' typically refers to the remedial measures that one party is entitled to take when the other party breaches the contract or fails to conform to the agreed terms. These measures include requiring specific performance, claiming damages, terminating the contract, reducing the price, repair, or replacement. This term is commonly found in international sales contracts (such as the CISG), letter of credit disputes, cargo quality disputes, and late delivery scenarios. Usage scenarios include: the buyer requesting remedies upon discovering non-conforming goods, or the seller proactively taking remedial measures after delayed delivery to mitigate losses. Notes: The choice of remedies is subject to contract terms, applicable law, and trade terms; different remedies may be mutually exclusive or must be exercised within a reasonable time; if liquidated damages are agreed upon, other remedies may be excluded. Distinction from other terms: 'Remedy' emphasizes the legal right to relief after a breach, while 'Claim' focuses on making a demand for compensation, and 'Compensation' usually refers to monetary damages with a narrower scope. Foreign trade practitioners should clearly define remedy clauses in contracts, promptly secure evidence, and avoid losing the right to remedies due to time limits or improper conduct.
📝 Examples
1. After receiving the goods, the buyer discovered that 10% of the products had quality defects and therefore demanded, pursuant to Article 12 of the contract, that the seller take remedial measures within 30 days, including free replacement of non-conforming goods and bearing the freight costs. (Note: The buyer exercises the right to remedy for non-conforming quality, requesting replacement and cost bearing.)
2. Because the seller delayed delivery by two weeks, the buyer notified the seller that if the goods were not delivered within a reasonable period, the buyer would terminate the contract and claim damages as remedies. (Note: Under delayed performance, the buyer combines termination of contract and damages as two remedies.)
💡 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)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner