General conditions of contract for the supply of plant and machinery
1.1 The contract shall be deemed to have been entered into upon receipt of a supplier’s written acknowledgement stating its acceptance of the order. Offers, which do not stipulate an acceptance period, shall not be binding.
1.2 These general conditions of supply shall be binding if declared applicable in the offer or in the order acknowledgement. Any conditions stipulated by the customer, which are in contradiction to these general conditions of supply, shall only be valid by an explicit written acknowledgement by the supplier.
1.3 All agreements and legally relevant declarations of the parties to the contract must be in written form in order to be valid.
1.4 Should a provision of these general conditions of supply prove to be wholly or partly invalid, the parties to the contract shall jointly seek an arrangement having a legal and economic effect which will be as similar as possible to the invalid provision.
2. Scope of supplies and services
The supplies and services are exhaustively specified in the order acknowledgement and in appendices thereto. The supplier shall be authorised to make any changes which lead to improvements, provided such changes do not result in a price increase.
3. Technical documents
3.1 Unless otherwise agreed upon, brochures and catalogues are not binding. Data provided for in technical documents are only binding in so far as having been explicitly stipulated as such.
3.2 Each party to the contract retains all rights to technical documents provided to the other. The party receiving these documents recognizes those rights and shall – without previous written consent of the other party – not make these documents available to any third party, either on the whole or in part and not use them for purposes other than those for which they were handed over.
4. Regulations In force in the country of destination and safety devices
4.1 The customer shall, at the latest when placing the order, draw the attention of the supplier to the standards and regulations applicable to the execution of the supplies and services, to the operation of the plant as well as to the health and
safety of the personnel.
4.2 Unless otherwise agreed upon, the supplies and services shall comply with those standards and regulations at the place of business of the customer about which the supplier has been informed under Clause 4.1. Additional or other safety devices shall be supplied to the extent as having been explicitly agreed upon.
5.1 Unless otherwise agreed upon, all prices shall be deemed to be net ex-works, excluding packing, in freely available Swiss francs without any deduction whatsoever. Any additional charges, such as, but not limited to, freight charges, insurance premiums, fees for export, transit, import and other permits, as well as for certifications, shall be borne by the customer. Likewise, the customer shall bear any taxes, fees, levies, customs duties and the like, which are levied out of, or in connection with the contract, or shall refund them to the supplier against adequate evidence in case the supplier is liable for them.
5.2 The supplier reserves the right to adjust the prices in case the wage rates or the raw material prices vary between the submission of the tender and the contractually agreed performance. In such case the adjustment shall be made according to the attached price adjustment clause. In addition, an appropriate price adjustment shall apply in case the delivery time has been subsequently extended due to any reason stated in Clause 8.3, or the nature or the scope of the agreed supplies or services has changed, or the material or the execution has undergone changes because any documents furnished by the customer were not in conformity with the actual circumstances, or were incomplete.
6. Terms of payment
6.1 Payments shall be made by the customer at supplier’s domicile according to the agreed terms of payment, without any deduction for cash discount, expenses, taxes, levies, fees, duties, and the like. Unless otherwise agreed upon the price shall be paid in the following instalments:
– One third as advance payment within one month after receipt of the order acknowledgment by the customer,
– One third on expiry of two thirds of the agreed delivery time,
– The remainder within one month after supplier’s advice that the supplies are ready for dispatch.
Payment shall be deemed to be effected as far as Swiss francs have been made freely available to the supplier at supplier’s domicile. In case payment by bills of exchange is agreed, the customer shall pay the cost of discounting of such bills, bill of exchange taxes and collection charges.
6.2 The dates of payment shall also be observed if transport, delivery, mounting, commissioning or taking over of the supplies or services is delayed or prevented due to reasons beyond supplier’s control, or if unimportant parts are missing, or if post-delivery work is to be carried out without the supplies being prevented from use.
6.3 If the advance payment or the contractually agreed securities are not provided in accordance with the terms of the contract, the supplier shall be entitled to adhere to or to terminate the contract, and shall in both cases be entitled to claim damages. If the customer is in delay with a further payment, or if the supplier is seriously concerned that it will not receive payments in total or in due time because of circumstances having taken place since entering into the contract, the supplier, without being limited in its rights provided Corby law, shall be entitled to refuse the further performance of the contract and to retain the supplies ready for dispatch until new terms of payment and delivery will have been agreed on and until the supplier will have received satisfactory securities. If such an agreement cannot be reached within a reasonable time, or in case the supplier does not receive adequate securities, the supplier shall be entitled to terminate the contract and to claim damages.
6.4 If the customer delays in the agreed terms of payment, it shall be liable, without reminder, for interest with effect from the date on which the payment was due at a rate depending on the terms prevailing at the customer’s domicile, but not less than four per cent over the current discount rate of the Swiss National Bank.
7. Reservation of title
The supplier shall remain the owner of all supplies until having received the full payments in accordance with the contract. The customer shall cooperate in any measures necessary for the protection of supplier’s title. In particular upon entering into the contract it authorizes the supplier to enter or notify the reservation of title in the required form in public registers, books or similar records, all in accordance with relevant national laws, and to fulfil all corresponding formalities, at customer’s cost. During the period of the reservation of title, the customer shall, at its own cost, maintain the supplies and insure them for the benefit of the supplier against theft, breakdown, fire, water and other risks. It shall further take all measures to ensure that the supplier’s title is in no way prejudiced.
8. Delivery period
8.1 The delivery period shall start as soon as the contract is entered into, all official formalities such as, but not limited to, import, export, transit and payment permits have been completed, payments due with the order have been made, any agreed securities given and the main technical points settled. The delivery period shall be deemed to be observed if by that period the supplier has sent a notice to the customer informing that the supplies are ready for dispatch.
8.2 Compliance with fine delivery period is conditional upon customer’s fulfilling of its contractual obligations.
8.3 The delivery period is reasonably extended:
a) If the information required by the supplier for performance of the contract is not received in time, or if the customer subsequently changes it thereby causing a delay in the delivery of the supplies or services;
b) if hindrances occur which the supplier cannot prevent despite using the required care, regardless of whether they affect the supplier or the customer or a third party Such hindrances include, but shall not be limited to, epidemics, mobilization, war, revolution, serious breakdown in the works, accidents, labour conflicts, late or deficient delivery by subcontractors of raw materials, semi finished or finished products, the need to scrap important work pieces, official actions or omissions by any state authorities or public bodies, natural catastrophes, force majeure;
c) if the customer or a third party is behind schedule with work it has to execute, or with the performance of its contractual obligations, in particular if the customer fails to observe the terms of payment
8.4 The customer shall be entitled to claim liquidated damages for delayed delivery into as far as it can be proved that the delay has been caused through the fault of the supplier and that the customer has suffered a loss as a result of such a delay. If substitute material can be supplied to accommodate the customer, the latter is not entitled to any damages for delay. Damages for delayed delivery shall not exceed 1/2 per cent for every full week’s delay and shall in no case whatsoever altogether exceed 5 per cent of the contract price of the part of the supplies in delay. No damages at all shall be due for the first two weeks of delay. After reaching the maximum liquidated damages for delayed delivery, the customer shall grant the supplier a reasonable extension of time in writing. If such extension is not observed for reasons within supplier’s control, the customer shall have the right to reject the delayed part of the supplies or services. If partial acceptance is economically not justified on the part of the customer, the latter shall be entitled to terminate the contract and to claim refund of the money already paid against return of the deliveries supplied.
8.5 In case a specific date instead of a delivery period is fixed, such date shall correspond to the last day of a delivery period, Clauses 8.1 to 8.4 apply by analogy.
8.6 Any delay of the supplies or services does not entitle the customer to any rights and claims other than those expressly stipulated in this Clause 8. This limitation does, however, not apply to unlawful intent or gross negligence on the part of the supplier, but does apply to unlawful intent or gross negligence of persons employed or appointed by the supplier to perform any of its obligations.
Packing shall be charged separately by the supplier and shall not be returnable. However, if it is declared as supplier’s property, it shall be returned by the customer, carriage paid, to the place of dispatch.
10. Passing of benefit and risk
10.1 The benefit and the risk of the supplies shall pass to the customer by the date of their leaving the works.
10.2 If dispatch is delayed at the request of the customer or due to reasons beyond supplier’s control, the risk of the supplies shall pass to the customer at the time originally foreseen for their leaving the works. From this moment on, supplies shall be stored and insured on the account and at the risk of the customer.
11. Forwarding, transport and insurance
11.1 The supplier shall in time be notified of special requirements regarding forwarding, transport and insurance. The transport shall be at customer’s
expense and risk. Objections regarding forwarding or transport shall, upon receipt of the supplies or of the shipping documents, be immediately submitted by the customer to the last carrier. 11.2 The customer shall be responsible for taking insurance against risks of any kind.
12. Inspection and taking-over of the supplies and services
12.1 As far as being normal practice, the supplier shall inspect the supplies and services before the delivery. If the customer requests further testing, this has to be specially agreed upon and paid for by the customer.
12.2 The customer shall inspect the supplies and services within a reasonable period and shall immediately notify the supplier in written form of any deficiencies. If the customer fails in doing so, the supplies and services shall be deemed to have been taken over.
12.3 Having been notified of the deficiencies the supplier shall as soon as possible remedy them according to Clause 12.2, and the customer shall give the supplier the possibility of doing so. After remedying such deficiencies, a taking-over test
according to Clause 12.4 will be carried out at the request of the customer or of the supplier.
12.4 Subject to Clause 12.3 the carrying out of a taking-over test as well as laying down the conditions related, thereto need a special agreement. In the absence of such agreement the following shall apply:
– The supplier shall advise the customer in time of the execution of the
taking-over test so that the customer or a representative can attend.
– A taking-over report shall be prepared which shall be signed by both, the customer and the supplier or by their representatives. Such report shall either state that the taking-over has taken place, or that it has taken place under reservations, or that the customer has refused the acceptance. In the last two cases, the deficiencies shall be listed separately in the report. In case of insignificant deficiencies, in particular those which do not substantially hinder the efficient functioning of the supplies or services, the customer shall not be entitled to refuse the acceptance of the supplies or services and the signature of the taking-over report. The supplier shall remedy such deficiencies without delay.
– In case of important deviations from the contractor of serious deficiencies the customer shall give the supplier the possibility of remedying these within a reasonable time. Thereafter a further taking-over test shall take place. If during this test important deviations from the contract or serious deficiencies appear again, the customer shall be entitled to claim either a price reduction or an indemnity or other compensations from the supplier, provided this has been agreed on beforehand. If, however, the deviations and deficiencies appearing during such test are of such importance that they cannot be remedied within a reasonable time and provided the supplies and services cannot be used for their specified purpose, or such use is considerably impaired, then the customer shall be entitled to refuse acceptance of the defective part or, if partial acceptance is economically not justified for it, to terminate the contract. In such case the supplier can only be held liable to reimburse the sums which have been paid for the parts affected by the termination.
12.5 Taking-over shall also be deemed completed:
– If the taking-over test cannot be carried out on the date provided for due to reasons beyond supplier’s control:
– If the customer refuses the acceptance without being entitled to do so;
– If the customer refuses to sign the taking-over report prepared in accordance with clause 12.4;
– As soon as the customer uses the supplies or services.
12.6 Deficiencies of any kind in supplies or services shall not entitle the customer to any rights and claims other than those expressly stipulated in Clauses 12.4 and
13. Guarantee, liability for defects
13.1 Guarantee period
The guarantee period is 12 months, or 6 months in case of 24-hour operation, it starts when the supplies leave the works or at the taking-over of the supplies and services should such taking-over have been agreed upon before, or, if the supplier undertakes the mounting, upon completion thereof. If dispatch or taking-over or mounting are delayed due to reasons beyond supplier’s control, the guarantee period shall end not later than 18 months after supplier’s notification that the supplies are ready for dispatch. For replaced or repaired parts the guarantee period starts anew and lasts 6 months after replacement or completion of the repair or taking-over, but not longer than the expiry of a period being double to the guarantee period stipulated in the preceding paragraph. The guarantee expires prematurely if the customer or a third party undertakes inappropriate modifications or repairs or if the customer, in case of a defect, does not immediately take appropriate steps to mitigate the damage and give the supplier the possibility of remedying such defect.
13.2 Liability for defects in material, design and workmanship Upon written request of the customer, the supplier undertakes at its choice to repair or replace as quickly as possible any parts of the supplies which, before the expiry of the guarantee period, are proved to be defective due to bad material, faulty design or poor workmanship. Replaced parts shall become supplier’s property. The supplier shall bear the costs of remedying the defective parts in its works. If the repair cannot be carried out in supplier’s works, the customer shall bear the related costs to the extent exceeding the customary costs of transport, personnel, travelling, living, dismantling and reassembly of the defective parts.
13.3 Liability for express warranties
Express warranties are only those which have been expressly specified as such in the order acknowledgment in the specifications. An express warranty is valid until the expiry of the guarantee period at the latest. If a taking-over test has been agreed on, the warranty shall be deemed to have been fulfilled as soon as the test results prove the relevant quality or capacity. If the express warranties are not or only partially achieved, the customer may first of all require the supplier to carry out the improvements immediately. The customer shall give the supplier the necessary time and possibility of doing so. If such improvements fail completely or only partially, the customer may claim such compensation as has been agreed on beforehand for such case, or, if such an agreement has not been made, a reasonable reduction of price, if, however, the defects are of such importance that they cannot be remedied within a reasonable time and provided the supplies and services cannot be used for their specified purpose, or if such use is considerably impaired, then the customer shall be entitled to refuse acceptance of the defective part or, if partial acceptance is economically not justified for it, to terminate the contract. In such case the supplier can only be held liable for reimbursing the sums which have been paid to it for the parts affected by the termination.
13.4 Exclusions from the liability for defects
Excluded from supplier’s guarantee and liability for defects are all deficiencies which cannot be proved to have their origin in bad material, faulty design or poor workmanship, e.g. those resulting from normal wear, improper maintenance, failure to observe the operating instructions, excessive loading, use of any unsuitable material, influence of chemical or electrolytic action, building or mounting work not undertaken by the supplier, or resulting from other reasons beyond supplier’s control.
13.5 Supplies and services of subcontractors
For supplies and services of subcontractors requested by the customer, the supplier assumes guarantee and liability for defects only to the extent of such subcontractors’ guarantee and liability obligations.
13.6 Exclusivity of guarantee claims
With respect to any defective material, design or workmanship as well as to any failure to fulfil express warranties, the customer shall not be entitled to any rights and claims other than those explicitly stipulated in Clauses 13.1 to 13.5.
13.7 Liability for additional obligations The supplier is only liable to the extent of unlawful intent or gross negligence as far as claims arising, out of faulty advice and similar or out of breach of any additional obligations are concerned.
14. Non-performance, bad performance and their consequences
14.1 In all cases of bad performance or non-performance not explicitly covered by these general conditions of supply in particular if the supplier, without valid reasons, starts the execution of the supplies and services so late that punctual completion is unlikely to be foreseen, calf an execution contrary to the terms of the contract can be clearly foreseen due to supplier’s fault, or if the supplies and services have been executed contrary to the terms of the contract due to supplies fault, then the customer shall be entitled to grant a reasonable additional period for the supplies or services affected thereby by simultaneously warning to terminate the contract in case of non-compliance. If such additional period lapses due to supplier’s fault, the customer shall be entitled to terminate the contract with respect to the supplies or services executed, or certain to be executed, contrary to the terms of the contract, and to claim a refund of the payments already made for such supplies or services.
14.2 In such cases Clause 16 shall apply with regard to any claims for damages on the part of the customer and with regard to the exclusion of any further liability, and any claim for damages shall be limited to 10 per cent of the contract price
for the supplies and services affected by the termination.
15. Force Majeure
Customer and Supplier shall be released from responsibility for partial or complete non-performance of their respective obligations under this contract if such non-performance is caused by an impediment beyond the relevant party’s reasonable control (where such party has not assumed the risk of the occurrence of the impediment and has exercised ordinary care in taking the impediment into account at the time of the conclusion of the contract, or in avoiding or overcoming the impediment or its consequences; “Force Majeure”). The impediment includes: war, sabotage, terrorism, insurrection, riots or any other acts of civil disobedience, act or demand of any person exercising governmental authority, court order, strike, boycott, epidemics, fire, explosion, flood, storm, earthquake or other act of God or public enemy and other circumstances beyond the parties reasonable control, including their (economic)
consequences. Each party agrees to:
(i) notify the other party as soon as possible of any occurrence of a Force Majeure event;
(ii) document such occurrence of a Force Majeure event within a reasonable period of time; and
(iii) resume full performance of its obligations under this contract as expeditiously as possible on cessation of any Force Majeure.
If an event of Force Majeure occurs, the dates and periods as to the performance of the obligations under this contract will be adjusted by mutual agreement of the parties or, if the parties fail to agree, will be extended by a period equal to the duration of such Force Majeure event plus a reasonable time to restart performance of such obligations. The parties shall be released from any obligation to pay damages, including damages for delays in performance of their obligations, caused by any occurrence of a Force Majeure event. If the circumstances arising from acts of Force Majeure last or are reasonably expected to last for a period of more than 3 months, each party will be free to state its withdrawal from the contract, in which case said contract will be deemed null and void and neither party will be able to claim any compensation from the other party.
16. Termination of the contract by the supplier
The contract shall be adapted appropriately, if unforeseen events considerably change the economic affect or the content of the supplies or services or considerably affect the activities of the supplier, or if performance subsequently becomes impossible. Insofar as such adaptation is economically not justifiable, the supplier shall be entitled to terminate the contract or the parts affected thereby. If the supplier wishes to terminate the contract it shall – after having recognized the consequences of the event – immediately inform the customer: this applies even if an extension of the delivery time has been agreed before. In case of a termination of the contract the supplier shall be entitled to the payment of those parts of the supplies and services which have already been carried out. Claims for damages on the part of the customer because of such termination are excluded.
17. Exclusion of further liability
Any rights and claims on the part of the customer other than those expressly stipulated in these general conditions of supply are excluded, irrespective on what ground they are based; this in particular refers to claims for damages, reduction of price or termination attire contract unless expressly stipulated therein. In any case whatsoever shall the customer not be entitled to claim damages other than compensation for costs of remedying defects in the supplied equipment. This in particular refers, but shall not be limited, to loss of production, loss of use, loss of orders, loss of profit and other direct or indirect or consequential damages. These exclusions, however, do not apply to unlawful intent or gross negligence on the part of the supplier, but do apply to unlawful intent or gross negligence of persons employed or appointed by the supplier to perform any of its obligations.
18. Right of recourse of the supplier
If, through actions or omissions of the customer or of persons employed or appointed by it to perform any of its obligations, personal injury or damage to the property of third parties occurs and if a claim is made against the supplier, then the latter shall be entitled to take recourse against the customer.
If the supplier undertakes the mounting or the supervision of the mounting, the General Conditions of Mounting of the supplier shall apply.
20. Jurisdiction and applicable law
20.1 In case of controversy, resulting from or in connection to the present quotation, only the Courts of Justice in Berne, Switzerland, are competent.
20.2 Swiss law shall apply exclusively, excluding the rules of conflict of laws and the provisions of the UN Convention on Contracts for the International Sale of Goods dated April 11, 1980.
HaslerRail AG Phone +41 (0)31 990 71 11
Freiburgstrasse 251 Fax +41 (0)31 990 72 22
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