FAQ

January 5, 2018

What is a waiver of subrogation?

When used in the insurance context, subrogation refers to an insurer’s ability to pursue a third party for the payments it made to the insured party.  Naturally, this is beneficial for the insurance company as it is able to recoup its losses.  However, the parties to the agreement may wish to prevent this subrogation for other reasons.
December 11, 2017

What is a Settlement Agreement?

A settlement agreement usually has two main parts.  First, it should include a waiver of legal liability for disputes arising out of the same issue.  This provides protection for the parties from a lawsuit over the same issue in the future.  Second, it should contain some transfer of assets or rights in exchange for waiving the right to sue.  This transfer will often be based upon what the wronged party might expect to win if the issue were litigated in court, but will usually be reduced by a fair amount to reflect the time and expense saved by not litigating […]
November 22, 2017

What is an Inspection Clause?

In order to ensure that the buyer officially accepts the products being sole, it is important to include an inspection clause in any purchase and sales agreement.  An inspection clause  mandates that the buyer has a duty to inspect the goods upon receipt and report any problems to the seller.  This requirement ensures that, if the shipment is defective in some way, the buyer’s inspection will catch it and it won’t arise as a problem later on.
October 25, 2017

What do the Incoterms EXW and DDP mean?

Ex Works (EXW) and Delivered Duty Paid (DDP) are the two Incoterms that are the most heavily weighted toward either the buyer or the seller.  Under the term EXW, the buyer is responsible for all aspects of the shipment, even packaging of the goods under some circumstances.  On the other hand, DDP requires the seller to take responsibility for delivering the goods, and paying all fees, from the seller’s warehouse all the way to the buyer’s final destination.  Additionally, unlike FOB or CFR, both of these terms may be used regardless of the mode of transport and may be applied […]