Settlement of Claim

Settlement of Claim refers to the process in the performance of a foreign trade contract where, due to a party's breach or damage to goods, the injured party files a claim against the responsible party, and both parties reach an agreement on the compensation amount, method, etc., and execute it. It commonly occurs in scenarios such as non-conforming quality, shortage in quantity, delayed delivery, transport damage, or insured events. When using settlement of claim, note: 1) Claims must be filed within the time limit stipulated in the contract or letter of credit, with supporting documents such as inspection reports; 2) Settlement methods include compensation, replacement, repair, price discount, etc., which should be clearly written into the settlement agreement; 3) If insurance is involved, distinguish the responsibilities of the carrier, insurance company, and seller. Unlike 'Claim', which is the act of filing a demand, settlement of claim is the result of resolving the claim; compared with 'arbitration', settlement of claim focuses more on negotiation and avoids legal procedures. The smoothness of settlement of claim directly affects customer relationships and future cooperation.