Compromise

In the context of foreign trade, 'Compromise' is not a strictly legal or ICC-defined trade term, but rather a business negotiation and dispute resolution strategy. It refers to buyers and sellers each making concessions on terms such as price, payment method, delivery time, quality standards, or claim amounts in order to reach an agreement or resolve a dispute. Common scenarios include: during contract performance, due to force majeure or market changes, one party cannot fully perform, and both parties adjust the terms through compromise; or in claim negotiations, the seller agrees to a partial refund, replacement, or discount, while the buyer waives the full claim. Points to note: a compromise should be clearly written into a written agreement (such as a supplementary agreement or settlement agreement), avoiding oral promises; it is necessary to distinguish 'compromise' from 'split the difference,' the latter specifically referring to the midpoint value in amount or quantity; also note that a compromise must not violate the applicable law or arbitration clause of the original contract. Compared with 'concession,' compromise emphasizes mutual concessions by both parties rather than a unilateral concession.