Quality Dispute refers to a disagreement arising in international sale of goods between the buyer and seller because the quality of the goods does not conform to the contract. Common scenarios include: inspection upon arrival reveals quality lower than the sample or specifications, defects, deterioration, or non-compliance with the importing country's standards. Usage scenarios mostly appear in claims, returns, arbitration, or litigation. Precautions: first, the contract should clearly specify quality standards and inspection basis (e.g., SGS, CIQ), and stipulate the inspection period and objection period; second, retain evidence such as inspection reports and correspondence emails; third, distinguish quality disputes from quantity disputes, packaging disputes, and late delivery, as the core of the former is non-conformity in 'quality', while the latter involve short quantity, damaged packaging, or time breach respectively. Compared with 'non-conformity in quality', quality dispute emphasizes a state where a dispute or claim has already arisen; compared with 'fundamental breach', a quality dispute does not necessarily reach the level of contract termination. In handling, prioritize negotiation, and if necessary, submit to arbitration or litigation according to the contract.
📝 Examples
1. After receiving the goods, the buyer found upon inspection that the ingredient content was lower than agreed in the contract, and therefore filed a quality dispute claim against the seller, requesting a price reduction or return. (Note: A claim arising from non-conforming quality is a typical quality dispute.)
2. The parties agreed in the contract to rely on the SGS inspection report at the port of shipment, but the inspection result at the port of discharge differed, resulting in a quality dispute submitted to arbitration. (Note: Conflicting inspection standards lead to a dispute, and the quality basis must be determined according to the contract.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
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