Inspection and tests

Inspection and tests play a very important role in business relations. They help to avoid many problems, which can arise in respect of the quality of the goods in future.

Inspection and tests are carried out at the expense of the Sellers or their subcontractors. It is stipulated in the Contract.

The Buyers have the right to send their inspectors to the Sellers their subcontractors and their subcontractors' premises.

The final tests and acceptance of the goods are to be performed in the Buyers' country after finishing the installation and adjustment of the equipment and achieving quantity and quality requirements stipulated in the Contract.

After the tests have been performed, "Report on the Final Test and Putting the Equipment into Operation" is made and signed by the Sellers and the Buyers' representatives, the detailed results of the tests performed being put in this report.

The date of signing the "Report on the Final Test and Putting the Equipment into Operation" is considered to be the date of putting the equipment into operation.

Insurance of goods

The idea of insurance is to obtain indemnity in case of damage or loss. Insurance is against risks.

While the goods are in a warehouse the insurance covers the risk of fire, burglary, etc.

The insured is better protected if his goods are insured against all risks. The goods may also be covered asainst general and particular average.

In the insurance business the word "average" means loss.

Particular average refers to risks affecting only one shipper's consignment.

Goods can be insured with one of the insurance companies.

CLAIMS

Unfortunately as in other walks of life in trade, too, error may occur and the goods may be mishandled

There are various reasons for complaints. The following kinds of claims are often made by Buyers:

1) claims arising from the delivery of wrong goods, damaged or substandard goods;

2) claims connected with delays of one kind or another;

3) claims owing to goods missing from delivery (short-­shipment or short-delivery);

4) claims that concern errors in carrying out an order, etc.

The parties do their best to settle their differences and claims amicably, but if they fail to agree, in accordance with the corresponding clause of the Contract, the claim is submitted for arbitration in Russia to the Arbitration Commission at the Russian Chamber of Commerce and Industry.

Settling commercial disputes

A Contract defines rights and obligations of the parties involved. In case of breach of the Contract the sufferer makes a claim on the party, which fails to meet their contractual obligations. It is more often the case that it is the Buyer who makes a claim on the Seller.

Most often the Buyer makes quality and quantity claims on the Seller. The cause for complaints may be poor quality, breakage, damage, short-weight, leakage, etc.

In case of short-weight it is recompensed by a load sent separately or at the time of follow-up shipments. In case of damage or faults, the goods at the Buyer's option can be repaired all at the Seller's expense.

Arbitration expenses, which are sometimes very high, are usually borne by the loser unless otherwise agreed upon.