Tolerance

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📖 Detailed Explanation

Tolerance in foreign trade specifically refers to the allowable deviation range for the quality, quantity, or specifications of goods as stipulated in the contract. It is commonly seen in bulk cargo transactions such as agricultural products, minerals, and chemicals, and is also used for industrial finished goods. Usage scenarios include: 1) Quantity tolerance, such as the 'more or less clause' allowing the seller to load or short-load a certain percentage; 2) Quality tolerance, such as allowing a fluctuation of ±0.5% in metal content. Notes: Tolerance must be explicitly written into the contract, otherwise disputes may arise; tolerance ranges vary greatly among different commodities, and industry practices or international standards (such as ISO) should be referenced. Difference from 'more or less': more or less focuses on quantity, while tolerance can cover both quantity and quality; similar to 'quality latitude', but the latter emphasizes quality indicators more. Different from 'error': tolerance is permitted by the contract, while error is a deviation between actual and standard. Reasonable use of tolerance can avoid breach of contract due to minor deviations, but abuse may affect the buyer's production.

📝 Examples

1. The quantity of soybeans under this contract allows a tolerance of 5%, at the seller's option to load more or less, with the price calculated based on the actual shipped quantity. (Note: Quantity tolerance allows the seller to arrange shipment flexibly and avoid breach of contract due to supply fluctuations.) 2. The copper content tolerance for copper concentrate is ±0.5%. If it exceeds this range, the buyer has the right to request a price reduction or reject the goods. (Note: Quality tolerance sets clear boundaries, protecting the buyer's rights while leaving reasonable room for the seller's production.)

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