Notice of Claim

A Notice of Claim is a formal written notification in international trade sent by one party (usually the buyer) to the other party (usually the seller or carrier) when goods are found to be inconsistent with the contract in terms of quality, quantity, packaging, etc. It serves to declare the intention to claim and preserve the right to claim. Usage scenarios include: short weight, damage, or specification mismatch discovered upon inspection after arrival; or claims raised after refusal of payment due to discrepant documents under a letter of credit. Precautions: first, it must be issued within the claim period stipulated in the contract or letter of credit, otherwise the right to claim may be lost; second, the notice should clearly state the condition of the goods, the facts of breach, the claim amount and basis, and attach inspection reports and other evidence; third, it should usually be sent in writing (e.g., email, letter) and proof of delivery should be retained. The difference from a 'Claim Letter' is that a Notice of Claim focuses more on 'informing' and 'preserving rights', while a Claim Letter more formally presents specific claim demands and solutions. It differs from a 'Notice of Discrepancy', which is mostly used for document discrepancies, whereas a Notice of Claim addresses the goods themselves or performance issues.