Defective Goods

Defective Goods refer to products whose quality fails to meet the standards stipulated in the contract due to issues in workmanship, materials, or operations during production, and which typically cannot be used or sold normally. In foreign trade, defective goods often involve claims, returns, replacements, or price discounts. Usage scenarios include: the buyer inspects the goods after receipt and finds that some or all products are defective, and raises a quality objection to the seller; or the seller proactively informs the buyer of defective goods before shipment and negotiates a solution. Notes: 1. The criteria for determining defective goods should be clearly defined (e.g., industry standards, contract annexes, samples); 2. Unlike 'Inferior Goods,' defective goods emphasize the existence of defects rather than merely a lower grade; 3. It is synonymous with 'Faulty Goods,' but defective goods place more emphasis on serious nonconformity in function or appearance; 4. The contract should stipulate the handling methods for defective goods (e.g., return, replacement, discount, repair) and the bearing of costs. Distinction: Defective goods usually cannot be downgraded for use through simple sorting, whereas 'off-grade goods' may still have use value. Foreign trade practitioners need to retain inspection evidence, communicate promptly, and avoid disputes.