A Phoenix Mecano Company

GENERAL TERMS AND CONDITIONS

 

I. GENERAL PROVISIONS

1.   Legal relations between  Supplier  and Purchaser  in connection with supplies and/or services of the Supplier (hereinafter referred to as “Supplies”) shall be solely governed  by the present  GL. The Purchaser’s  general terms and conditions  shall apply only if expressly  accepted by the Supplier  in writing.  The scope of delivery shall be determined by the congruent mutual written declarations.

2.   The Supplier  herewith  reserves  any industrial  property  rights  and/or  copy- rights  pertaining  to its cost  estimates,  drawings  and other documents (hereinafter  referred  to  as  “Documents”). The Documents shall  not  be  made accessible  to  third  parties  without  the  Supplier’s prior  consent  and  shall, upon request, be returned without  undue delay to the Supplier if the contract is not awarded  to the Supplier.  Sentences  1 and 2 shall apply mutatis  mutandis to the Purchaser’s  Documents; these may, however, be made accessible to those third parties  to whom  the Supplier  has rightfully  subcontracted Supplies.

3.   The Purchaser  has  the  non-exclusive right  to  use  standard  software  and firmware, provided  that it remains unchanged, is used within the agreed performance parameters,  and on the agreed equipment. Without express agreement the Purchaser  may make one back-up copy of standard  software.

4.   Partial deliveries are allowed,  unless they are unreasonable  to accept  for the Purchaser.

5.   The term „claim  for damages” used in the present  GL also includes  claims for indemnification for useless expenditure.

 

II. PRICES,  TERMS  OF PAYMENT, AND SET-OFF

1.   Prices  are  ex  works  and  excluding packaging; value  added  tax  shall  be added at the then applicable rate.

2.   If the Supplier  is also responsible for assembly  or erection  and unless other- wise agreed, the Purchaser  shall pay the agreed remuneration and any incidental costs required,  e. g. for traveling and transport as well as allowances.

3.   Payments  shall be made free Supplier’s paying office.

4.   The Purchaser  may set off only those claims  which  are undisputed or non- appealable.

 

III. RETENTION OF TITLE

1.   The items  pertaining  to  the  Supplies  (“Retained  Goods”)  shall  remain  the Supplier’s property  until each and every claim the Supplier  has against  the Purchaser  on account  of the business  relationship has been fulfilled.  If the combined value of the Supplier’s security  interests  exceeds  the value of all secured  claims  by more than 10 %, the Supplier  shall release a corresponding  part  of  the  security  interest  if  so  requested   by  the  Purchaser;  the Supplier  shall  be  entitled  to  choose  which  security  interest  it  wishes  to release.

2.   For the duration  of the retention  of title, the Purchaser  may not pledge  the Retained Goods or use them as security, and resale shall be possible  only for resellers in the ordinary  course  of their business  and only on condition that the reseller receives payment from its customer  or makes the transfer of property to the customer dependent upon the customer fulfilling its obligation to effect payment.

3.  The Purchaser shall inform the Supplier forthwith of any seizure or other act of intervention by third parties.

4.  Where the Purchaser fails to fulfill its duties, fails to make payment due, or otherwise violates its obligations the Supplier shall be entitled to rescind the contract and take back the Retained Goods in the case of continued failure following expiry of a reasonable remedy period set by the Supplier; the statutory provisions providing that a remedy period is not needed shall be unaffected.  The Purchaser shall be  obliged  to  return  the  Retained Goods. The fact that the Supplier takes back Retained Goods and/or exercises the retention of title, or has the Retained Goods seized, shall not be construed to constitute a rescission of the contract, unless the Supplier so expressly declares.

 

IV. TIME FOR SUPPLIES; DELAY

1.  Times set for Supplies shall only be binding if all Documents to be furnished by the Purchaser, necessary permits and approvals, especially concerning plans, are received in time and if agreed terms of payment and other obligations of the Purchaser are fulfilled. If these conditions are not fulfilled in time, times set shall be extended reasonably; this shall not apply if the Supplier is responsible for the delay.

2.   If non-observance of the times set is due to force majeure such as mobilization, war, rebellion or similar events, e. g. strike or lockout, such time shall be extended  accordingly. The same shall apply if the Supplier  does not receive its own supplies  in due time or in due form.

3.   If the Supplier  is responsible for the delay (hereinafter referred to as “Delay”) and   the   Purchaser   has  demonstrably  suffered   a  loss   there from,   the Purchaser  may claim  a compensation as liquidated damages  of 0.5 %  for every completed week of Delay, but in no case more than a total of 5 % of the price of that part of the Supplies which due to the Delay could not be put to the intended  use.

4.   Purchaser’s  claims  for damages  due to delayed  Supplies  as well as claims for damages  in lieu of performance exceeding  the limits  specified  in No. 3 above are excluded  in all cases of delayed  Supplies,  even upon expiry of a time set to the Supplier  to effect  the Supplies.  This shall not apply in cases of mandatory  liability based on intent, gross negligence,  or due to loss of life, bodily   injury   or  damage   to  health.   Rescission   of  the  contract  by  the Purchaser based on statute is limited to cases where the Supplier is responsible for the delay. The above provisions do not imply  a change  in the bur- den of proof to the detriment of the Purchaser.

5.   At the Supplier’s request,  the Purchaser  shall  declare  within  a reasonable period of time whether  it, due to the delayed Supplies,  rescinds  the contract or insists on the delivery of the Supplies.

6.   If dispatch or delivery,  due to Purchaser’s  request,  is delayed  by more than one  month  after  notification of  the  readiness  for  dispatch was  given,  the Purchaser may be charged,  for every additional month commenced, storage costs of 0.5 % of the price of the items of the Supplies,  but in no case more than a total of 5 %. The parties to the contract may prove that higher or, as the case may be, lower storage  costs  have been incurred.

 

V. PASSING OF RISK

1.   Even where delivery  has been agreed  freight  free, the risk shall pass to the Purchaser  as follows:

a) if the Supplies  do not include assembly  or erection,  at the time when the Supplies  are shipped  or picked  up by the carrier.  Upon  the Purchaser’s request,  the Supplier  shall insure the Supplies  against  the usual risks of transport at the Purchaser’s  expense;

b)  if the Supplies  include  assembly  or erection,  at the day of taking  over in the Purchaser’s  own works  or, if so agreed, after a fault-free  trial run.

2.   The risk shall pass to the Purchaser  if dispatch, delivery,  the start or performance  of  assembly  or  erection,  the  taking  over  in  the  Purchaser’s   own works,  or  the  trial  run  is delayed  for  reasons  for  which  the  Purchaser  is responsible or if the Purchaser  has otherwise  failed to accept  the Supplies.

 

VI. ASSEMBLY  AND ERECTION

Unless otherwise  agreed in written  form, assembly and erection  shall be subject to the following provisions:

1.   The Purchaser  shall provide  at its own expense and in due time:

a) all  earth  and  construction work  and  other  ancillary  work  outside   the Supplier’s scope, including the necessary skilled and unskilled labor, construction materials and tools,

b) the equipment and materials necessary for assembly and commissioning such as scaffolds, lifting equipment and other devices as well as fuels and lubricants,

c) energy and water at the point of use including connections, heating and lighting,

d) suitable dry and lockable rooms of sufficient size adjacent to the site for the storage of machine parts, apparatus, materials, tools, etc. and adequate working and recreation rooms for the erection personnel, including sanitary facilities as are appropriate in the specific circumstances; further- more, the Purchaser shall take all measures it would take for the protection of its own possessions to protect the possessions of the Supplier and of the erection personnel at the site,

e) protective clothing and protective devices needed due to particular conditions  prevailing  on the specific  site.

2.  Before the erection work starts, the Purchaser shall unsolicitedly make available any information required concerning the location of concealed electric power, gas and water lines or of similar installations as well as the necessary structural data.

3.  Prior to assembly or erection, the materials and equipment necessary for the work to start must be available on the site of assembly or erection and any preparatory work  must  have advanced  to such  a degree  that  assembly  or erection   can  be  started  as  agreed  and  carried  out  without   interruption. Access roads and the site of assembly  or erection  must be level and clear.

4.   If assembly,  erection  or commissioning is delayed  due to circumstances for which the Supplier  is not responsible, the Purchaser  shall bear the reasonable costs  incurred  for idle times and any additional traveling  expenditure of the Supplier  or the erection  personnel.

5.   The Purchaser  shall attest  to  the hours  worked  by the erection  personnel towards  the Supplier  at weekly intervals and the Purchaser  shall immediately confirm  in written  form  if assembly,  erection  or commissioning has been completed.

6.   If, after completion, the Supplier  demands  acceptance of the Supplies,  the Purchaser  shall comply  therewith  within  a period  of two  weeks.  In default thereof, acceptance is deemed to have taken place. Acceptance is also dee- med to have been effected  if the Supplies  are put to use, after completion of an agreed test phase, if any.

 

VII. RECEIVING  SUPPLIES

The Purchaser  shall not refuse to receive Supplies  due to minor defects.

 

VIII. DEFECTS  AS TO QUALITY

The Supplier  shall be liable for defects  as to quality, hereinafter referred to as “Defects”,) as follows:

1.   Defective  parts  or defective  services  shall be, at the Supplier’s discretion, repaired, replaced  or provided  again free of charge, provided  that the reason for the Defect had already existed at the time when the risk passed.

2.   Claims for repair or replacement are subject  to a statute  of limitations of 12 months  calculated from  the start  of the statutory statute  of limitations; the same shall apply  mutatis  mutandis  in the case of rescission  and reduction. This shall not apply where longer periods  are prescribed by law according to Sec. 438 paragraph 1 No. 2 (buildings  and things  used for a building),  Sec. 479 paragraph 1 (right of recourse), and Sec. 634a paragraph 1 No. 2 (defects of a building) German  Civil Code  (“BGB”),  in the case  of intent,  fraudulent  concealment of the Defect or non-compliance with guaranteed characteristics (Beschaffenheitsgarantie). The legal provisions regarding  suspension  of the statute of limitations (“Ablaufhemmung”, “Hemmung”)  and recommencement of limitation  periods  shall be unaffected.

3.   Notifications of Defect by the Purchaser shall be given in written form without undue delay.

4.   In the case of notification of a Defect, the Purchaser may withhold  payments to an amount that is in a reasonable proportion to the Defect. The Purchaser, however, may withhold  payments  only if the subject-matter of the notification of the Defect  involved  is justified  and incontestable. The Purchaser  has no right to withhold  payments  to the extent that its claim of a Defect is time-bar- red. Unjustified  notifications of Defect  shall entitle  the Supplier  to demand reimbursement of its expenses  by the Purchaser.

5.   The Supplier  shall be given the opportunity to repair or to replace the defective good (“Nacherfüllung”) within a reasonable  period of time.

6.   If repair or replacement is unsuccessful, the Purchaser  is entitled  to rescind the  contract  or  reduce   the  remuneration;  any  claims   for  damages   the Purchaser  may have according to No. 10 shall be unaffected.

7.   There shall be no claims based on Defect in cases of insignificant deviations from the agreed quality, of only minor impairment of usability,  of natural wear and tear, or damage  arising after the passing  of risk from faulty or negligent handling,  excessive strain, unsuitable  equipment, defective  civil works, inappropriate foundation soil, or claims  based  on particular  external  influences not assumed  under the contract, or from  non-reproducible software  errors. Claims  based  on  defects  attributable to  improper modifications or  repair work carried out by the Purchaser or third parties and the consequences thereof are likewise excluded.

8.   The Purchaser  shall have no claim with respect  to expenses  incurred  in the course  of supplementary performance, including  costs  of travel,  transport, labor,  and material,  to the extent  that expenses  are increased  because  the subject-matter of the Supplies  has subsequently been  brought  to  another location  than the Purchaser’s  branch  office,  unless doing  so complies  with the normal use of the Supplies.

9.  The Purchaser’s right of recourse against the Supplier pursuant to Sec. 478

BGB is limited to cases where the Purchaser has not concluded an agreement with its customers exceeding the scope of the statutory provisions governing claims based on Defects. Moreover, No. 8 above shall apply mutatis mutandis to the scope of the right of recourse the Purchaser has against the Supplier pursuant to Sec. 478 paragraph 2 BGB.

10. The Purchaser shall have no claim for damages based on Defects. This shall not apply to the extent that a Defect has been fraudulently concealed, the guaranteed characteristics are not complied with, in the case of loss of life, bodily injury or damage to health, restrictions to liberty and/or intentionally or grossly negligent breach of contract on the part of the Supplier. The above provisions do not imply a change in the burden of proof to the detriment of the Purchaser. Any other or additional claims of the Purchaser exceeding the claims provided for in this Article VIII, based on a Defect, are excluded.

 

IX. INDUSTRIAL PROPERTY RIGHTS AND COPYRIGHT; DEFECTS IN TITLE

1.  Unless otherwise agreed, the Supplier shall provide the Supplies free from third parties’ industrial property rights and copyrights (hereinafter referred to as “IPR”) with respect to the country of the place of delivery only. If a third party asserts a justified claim against the Purchaser based on an infringement of an IPR by the Supplies made by the Supplier and used in conformity with the contract, the Supplier shall be liable to the Purchaser within the time period stipulated in Article VIII No. 2 as follows:

a) The Supplier  shall  choose  whether  to  acquire,  at its own  expense,  the right to use the IPR with respect  to the Supplies  concerned or whether to modify  the Supplies  such that they no longer infringe  the IPR or replace them. If this would  be impossible for the Supplier  under reasonable  conditions,  the Purchaser  may rescind  the contract or reduce the remuneration pursuant  to the applicable statutory provisions.

b)  The Supplier’s liability  to pay damages  is governed  by Article XI.

c)  The above obligations of the Supplier  shall apply only if the Purchaser  (i) immediately notifies  the Supplier  of any such claim asserted  by the third party  in written  form,  (ii) does not concede  the existence  of an infringement and (iii) leaves any protective measures and settlement  negotiations to the Supplier’s discretion. If the Purchaser  stops  using the Supplies  in order to reduce  the damage  or for other good  reason, it shall be obliged to point  out  to the third  party  that  no acknowledgement of the alleged infringement may be inferred from the fact that the use has been discontinued.

2.   Claims of the Purchaser shall be excluded  if it is responsible for the infringement of an IPR.

3.   Claims  of the Purchaser  are also excluded  if the infringement of the IPR is caused  by specifications made by the Purchaser,  by a type of use not fore- seeable by the Supplier  or by the Supplies  being modified by the Purchaser or being used together  with products not provided  by the Supplier.

4.   In addition, with  respect  to  claims  by the Purchaser  pursuant  to  No.  1 a) above, Article VIII Nos. 4, 5, and 9 shall apply mutatis  mutandis  in the event of an infringement of an IPR.

5.   Where other defects  in title occur,  Article VIII shall apply mutatis  mutandis.

6.   Any other claims  of the Purchaser  against  the Supplier  or its agents or any such claims exceeding  the claims provided  for in this Article IX, based on a defect  in title, are excluded.

 

X. IMPOSSIBILITY OF PERFORMANCE; ADAPTATION  OF CONTRACT

1.   To the extent  that  delivery  is impossible, the Purchaser  is entitled  to claim damages, unless the Supplier is not responsible for the impossibility. The Purchaser’s  claim for damages  is, however,  limited  to an amount  of 10 % of the value of the part of the Supplies  which,  owing  to the impossibility, can- not be put to the intended  use. This limitation  shall not apply in the case of mandatory  liability  based  on intent,  gross  negligence  or loss of life, bodily injury  or damage  to health;  this does  not  imply  a change  in the burden  of proof to the detriment of the Purchaser.  The Purchaser’s  right to rescind  the contract shall be unaffected.

2.   Where unforeseeable  events within  the meaning  of Article IV No. 2 substantially  change  the economic importance or the contents of the Supplies  or considerably affect  the Supplier’s business,  the contract shall be adapted taking  into account  the principles of reasonableness and good  faith. To the extent this is not justifiable  for economic reasons, the Supplier shall have the right  to rescind  the contract. If the Supplier  intends  to exercise  its right  to rescind the contract, it shall notify the Purchaser thereof without  undue delay after having realized the repercussions of the event; this shall also apply even where an extension  of the delivery  period  has previously  been agreed  with the Purchaser.

 

XI. OTHER CLAIMS  FOR DAMAGES; STATUTE OF LIMITATIONS

1.   The Purchaser  has no claim  for damages  based  on whatever  legal reason, including  infringement of duties  arising  in connection with  the contract or tort.

2.   The above shall not apply in the case of mandatory  liability,  e. g. under the German  Product   Liability   Act  (“Produkthaftungsgesetz”),  in  the  case  of intent,  gross  negligence,  loss  of life, bodily  injury  or damage  to health,  or breach  of a condition which  goes to the root  of the contract (“wesentliche Vertragspflichten”). However,  claims for damages  arising from a breach  of a condition which  goes to the root of the contract shall be limited  to the fore- seeable damage which is intrinsic  to the contract, unless caused by intent or gross negligence or based on liability for loss of life, bodily injury or damage to health. The above provision does not imply a change in the burden of proof to the detriment of the Purchaser.

3.  To the extent that the Purchaser has a claim for damages, it shall be time- barred upon expiration of the statute of limitations pursuant to Article VIII No.

2. The same shall apply to  the Purchaser’s claims in connection  with actions undertaken to avoid any damage (e. g. callback). In the case of claims for damages under the German Product Liability Act, the statutory statute of limitations shall apply.

 

XII. VENUE AND APPLICABLE LAW

1.  If the Purchaser is a businessman, sole venue for all disputes arising direct- ly or indirectly out of the contract shall be the Supplier’s place of business. However, the Supplier may also bring an action at the Purchaser’s place of business.

2.  Legal relations existing in connection with this contract shall be governed by German substantive law, to the exclusion of the United Nations Convention on contracts for the International Sale of Goods (CISG).

 

XIII. SEVERABILITY CLAUSE

The legal invalidity of one or more provisions of this Agreement  in no way affects the validity of the remaining provisions. This shall not apply if it would be unreasonable for one of the parties to be obligated to continue  the contract.

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