When differences in payment arise because of errors in the payment of funds:
A) claims should be made for the costs incurred by the injured party and include all administration costs
B) no party involved can be enforced to contribute to achieve an equitable resolution to the problem
C) no market participant should be unjustly enriched or injured by the action/error of another market participant
D) claims are calculated on the full principal amount of the failed payment with the interest rate imposed by the injured party

Question

Quizplus · Accepted Answer

When differences in payment arise because of errors, it is important to ensure that no market participant is unjustly enriched or injured by the action/error of another market participant. This means that an equitable resolution should be sought to compensate the injured party and ensure that they are not unfairly burdened with costs incurred due to the error. While claims may be made for costs incurred, these should be reasonable and not exceed the amount necessary to rectify the error. It may also be appropriate to seek interest on the amount owed, but this should be at a reasonable rate that reflects the actual costs incurred by the injured party.

When Differences in Payment Arise Because of Errors in the Payment