Sanctions and Force Majeure
Claims and Adjustments
In ideal business conditions everything should be done carefully-details of offers and orders checked,manufacture of the goods carried out properly,packing and marking verified.However,it often happens that one of the parties to the C considers that the other party has infringed the tems of the C.In such cases the dissatisfied P may think it necessary to send the other P a letter of complaint which often contains a claim.There are arious reasons for complaints.The following kinds of claims ae often made by Buyes:1)claims arising from the delivery of wrong goods,damaged goods or substandard goods;2)claims connected with delays of one kind or another.(In this case the Buyers can claim agreed and liquidated damages for delay in delivery);3)claims owing to goods missing from delivery(such as short-shipment or short-deliery);4)claims that concern errors in carrying out an order.These may be caused by mis-typing of figures,mis-reading of numbers,misdirection of goods,wrong packing and so on.S most frequently make claims on B because of default of payment.As a rule a customer will not complain unless he has a good reason.If the customer’s complaint is well-grounded,the settlement is comparatively easy:the error will be admitted and the responsible P will met the claim fully or partly.In othe words the dissatisfied P will get full or partial compensation for the losses which they suffered.Thus the matter is settled amicably.Much moe difficult is the case where the customer’s complaint is not justified.It would be wrong policy to reject the claim off-hand.The esponsible party must carefully explain why the claim is declined and try to persuade the dissatisfied P to withdraw the claim.If a compromise cannot be reached the parties in dispute hae to to esort to litigation.Litigation can be very expensive and very slow.Often,in business the client has to continue to deal with the person with whom he is in dispute.Therefore it is not always in the best long-term interests of the parties to ente into such hostile relations as are involved in court procedure.In recognition of this fact,a numbe of procedus of alternatie dispute resolution(ADR) been developed.ADR is means of resolving disputes by using an independent third party who may help the parties to rach their own solution,but who cannot impose a solution.It is voluntary.The P choose the process and either of them can withdraw at any time.The most effective of these alternative rocedures is arbitrations.This is the procedure whereby P in dispute refer the issue to an arbitration court.In arbitration a dispute is decided by one or more arbitrator(s) who are usually experts chosen from a particular fild or professional body.The decision of the arbitration court is called an award.The award is made by majority vote.The award of the AC is final and binding upon both P and enforceable through the courts.It is not subject to appeal.
Sanctions and Force Majeure
In contemporary business it is common practice for commercial contracts to contain clauses about sanctions and force majeure.There are several situation in which sanctions are arrised:1)in the event of the S’delay in the supply against the dates stipulated in the C the S are pay to the B penalty at the rate of 0,5% of the value of the goods not delivered in due time for every week of delay within the first four weeks and 1% for every subsequent week but no more than 10% of the value of the equipment not delivered in due time.2)The penalties will be deducted from the S’invoices when they are paid by the B.In case the B for any reason do not deduct the penalty when paying the S’invoice the latter is obliged to pay the penalty amount at the first request of the B.3)Should the delay in delivery exceed 4 months the B shall have the right to cancel the C.The Parties are released from responsibility for partial or complete non-fulfilment of their liabilities under the present C,if this non-fulfilment was caused by the circumstances of FM,namely:fire,flood,earthquake,provided these c-s have directly affected the execution of the pr.C.In this case the time of fulfilment of the C obligations is extended for the period equal to that during which such c-s prevail.1)The P,for which it became impossible to meet obligations under the C,is to notify in written form the other P of the beginning and cessation of the above circum-s immediately,but in any case not later than ten days of the moment of their beginning.The notification of the FM c-s not made within 15 days deprives the corresponding P of the right to refer to such c-s in future.2)The written evidence issued by the respective Chambers of Commerce will be sufficient proof of the existence and duration of the above indicated c-s.3)If these c-s last longer than 6 months,each P will be entitled to cancel the whole C or any part of it and in this case neither P shall have the right to demand any compensation for eventual losses from the other P.The S undertake in this case to immediately reimburse the B for all the advanced amounts paid by the latter under the pr.C.
Arbitrations
Most business contracts contain an arbitration clause requiring the parties to refer their disputes to arbitration.These clauses may vary from contract to contract.I would like to talk about a version of the Arbitration Clause.1)The B and the S take all necessary measures to settle amicably any disputes and differences which can arise out of the pr.C or in connection with it.If the parties can’t reach agreement,all the disputes and differences are to be submitted for Arbitration in Stockholm(Sweden) in accordance with the rules and regulation of the Chamber of Commerce in Stockholm applying substantive lows of Sweden.2)A-n shall be established as follows:The party which wishes to refer the dispute to A-n shall notify the other party by a registered letter stating there the name and the address of the a-r chosen who can be a citizen of any country,the subject of the dispute,date and № of the C.Within 30 days of receipt of the above letter the other party shall choose it’s a-r and inform the 1st party of it by a registered letter stating the name and the address of the a-r chosen.3)If the party which has received the notification of the dispute being submitted to A-n fails to choose it’s a-r within the said period,the a-r,at the other party’s request,will be appointed within 30 days of the date of the application by the President of the Chamber of Commerce in Stockholm.4)The a-n award shall state the reasons for the decisions taken and contain information about the a-n membership,time and place of the award passed,mention of the parties’rights to state an opinion,as well as the allocation of the costs and expenses of the A-n between the parties.
Medicine and Helth
The National Health Service (N.H.S) was introduced in Great Britain in 1948. It provides free medical treatment both in hospital and outside. In fact, 97% of the population use the N.H.S. If a patient is dissatisfied with his N.H.S. family doctor or dentist, he may change to another one. The most medical treatment in Great Britain is free, but charges are made for drugs, spectacles and dental care.
People in Great Britain can choose between N.H.S. or private treatment in any time. In big towns there are some private hospitals ( called “nursing homes”), which people may use. Many patients who have enough money still prefer to be private patients, because they think that way establish more personal relations with the doctor, or, because if they are seriously ill or need operation, they want to choose the doctor for themselves.
70 % of the hospitals are small with about 200 beds. Most of them were built in 19th century. Such hospitals are uneconomic and cannot provide a full range of service which require a district hospital of 800 beds. Now there are more than 150 health centers in Great Britain, which contain all the special diagnostic and therapeutic services.
The emergency service operates day and night and is free of charge both in Russia and Great Britain. Doctor’s Examination and Treatment Everybody can fall ill with any disease. Once in the morning I felt very bad. I had a very bad cough and headache. I called a doctor from a polyclinic. She gives me a thermometer to take my temperature. The temperature was high, 38 degrees. She listened to my heart and lungs and made a diagnosis. It was flu. Then she prescribed me some medicines: pills, nasal drops and mixture. She also advised me to drink a lot of tea with lemon. I followed all the doctor’s instructions and very soon I felt much better. In 7 days I fully recovered.
Now I go in for sports because sports make me strong and healthy. Every day I do my morning exercises. There is a good proverb: An apple a day keeps doctor away. That’s why I eat a lot of fruits and vegetables.
Litigation
In business when the parties cannot resolve the disputes or differences in an amicable way they resort to l-n.If a businessman opts for l-n he is making a business decision.Yhis decision ivolves’time and money.There is a limit of time that a businessman can devote to the conduct of litigation.There is a limit to the amount of money he can afford to spend on legal costs in an action where the opponent may not be solvent and the prospects of success are never certain.In view of this it is necessary to consider the following.1)Is the l-n necessary?Should the matter be dealt with by arbitration?Is ADR appropriate?Is it a case where it would be better to settle quickly rather than incur costs unnecessarily?Would it be better for the client to settle the case in order to preserve a long-standing business relationship with the opponent?2)Will other customers or suppliers lose confidence in the client if they learn of the dispute?3)Will it be possible to recover damages and/or costs from the opponent?4)Does the client want the legally correct solution,the cheapest solution or the quickest solution?5)What are the most important issues in the dispute?The principal feather of ADR is that it enables a neutral party to discuss th problem and possible solutions with both parties.This may lead to a quick and painless solution.Disputes ar often caused by misunderstanding rather than bad faith and,when the parties come to ralize how the problem came about,they may find it easier to see the other side’s point of view and to reach agreement.Courts have become increasingly supportive of using ADR as a means of resolving disputes even after litigation has commenced.