Common use of Defects in Quality Clause in Contracts

Defects in Quality. 7.1.1 The supplier shall, at his discretion, either repair or replace free of defects (repair or replacement delivery; hereinafter together: “post-performance”) at no charge all those parts which have turned out to be defective as the result of circumstances before the passing of risk. 7.1.2 The supplier shall be informed immediate in writing as soon as such defects are determined. 7.1.3 Parts which are the subject of complaint shall be returned to the supplier only on his request. Costs for the return shipment of the parts which are the subject of complaint are born by the purchaser. 7.1.4 Concerning replaced parts, the supplier is entitled to demand handing out and the transfer of title. 7.1.5 In the event of notice of defects, payments by the purchaser may only be withheld to an extent which is in proportion to the defects in quality which have occurred. The purchaser may only withhold payments if a notice of defect is asserted about which there is no dispute. If the notice of defect is unjustified, the supplier is entitled to demand compensation from the purchaser for costs which have arisen as a result. 7.1.6 In order to undertake all the work for post-performance deemed necessary by the supplier, the purchaser shall make the required time and opportunity available following consultation with the supplier. If he fails to do so, the supplier is released of liability for the consequences arising. The purchaser only has the right to rectify the defect himself or have it rectified by third parties and to demand compensation for the necessary costs from the supplier in the event of urgent cases when operational safety is at risk or to prevent disproportionately large damage. The supplier shall be informed immediately in such an event. 7.1.7 Of the direct costs arising through post-performance, the supplier shall bear the costs of the replacement part including shipping if the complaint turns out to be justified. To the extent that the purchaser demands compensation for expenditures arising to him or recompensed to his customer by legal requirement, the compensation to be paid by the supplier shall be determined as follows: Compensation shall only be paid for removal and installations costs necessary for post- performance as well as transport costs. In determining the level of such compensation, the economic circumstances of the supplier, type, scope and duration of the business relationship as well as the degree of causation and any fault of the supplier and the installation situation of the delivery item concerned shall be appropriately taken into consideration in favour of the supplier. In particular, the compensation to be paid by the supplier shall be in an appropriate relationship to the value of the delivery item concerned as well as to the annual turnover between supplier and purchaser with regard to these delivery items. The obligation to pay compensation shall be excluded to the extent that the purchaser has, in turn, effectively limited liability towards his customer. Here the purchaser shall endeavour to agree limitations on liability in the legally permissible scope also in favour of the supplier. 7.1.8 Within the framework of statutory regulations, the purchaser has a right to rescind the contract if – taking account of the statutory exceptions – an appropriate period for post-performance of a defect has been set by the purchaser and passed without result. If the defect is immaterial, the purchaser only is entitled to an abatement of the contract price. The right to an abatement of the contract price is excluded in all other respects. Further claims are determined in accordance with Clause 8.2. 7.1.9 No warranty is assumed in the following cases, in particular: Minor deviation from the agreed condition, minor impairment of usability,unsuitable or improper use, defective assembly or commissioning by the purchaser or third parties, natural wear and tear, defective or negligent treatment, improper maintenance, unsuitable operating media, chemical, electro-chemical or electrical influences – to the extent that they are not the responsibility of the supplier. 7.1.10 Guarantee promises by the supplier, particularly quality and durability guarantees, such as in delivery specifications, contract specifications, performance specifications, performance descriptions, bills of quantities or other documents are expressly excluded subject to the provisions in Clause 1.1, even if they are designated as such. 7.1.11 If there is improper reworking by the purchaser or a third party, the supplier shall not be liable for any consequences arising. The same applies to changes to the delivery item undertaken without agreement of the supplier. 7.1.12 The results on the supplier’s test bed determine the function and operation characteristics of the delivery items. The supplier does not assume liability for defects occurring through the installation conditions or improper operation and maintenance. 7.1.13 Post-performance, no matter in what form, under no circumstances shall represent acceptance of a claim accruing to the purchaser.

Defects in Quality. 7.1.1 The supplier shall, at his discretion, either repair or replace free of defects (repair or replacement delivery; hereinafter together: “post-performance”) at no charge all those parts which have turned out to be defective as the result of circumstances before the passing of risk. 7.1.2 The supplier shall be informed immediate in writing as soon as such defects are determined. 7.1.3 Parts which are the subject of complaint shall be returned to the supplier only on his request. Costs for the return shipment of the parts which are the subject of complaint are born by the purchaser. 7.1.4 Concerning replaced parts, the supplier is entitled to demand handing out and the transfer of title. 7.1.5 In the event of notice of defects, payments by the purchaser may only be withheld to an extent which is in proportion to the defects in quality which have occurred. The purchaser may only withhold payments if a notice of defect is asserted about which there is no dispute. If the notice of defect is unjustified, the supplier is entitled to demand compensation from the purchaser for costs which have arisen as a result. 7.1.6 In order to undertake all the work for post-performance deemed necessary by the supplier, the purchaser shall make the required time and opportunity available following consultation with the supplier. If he fails to do so, the supplier is released of liability for the consequences arising. The purchaser only has the right to rectify the defect himself or have it rectified by third parties and to demand compensation for the necessary costs from the supplier in the event of urgent cases when operational safety is at risk or to prevent disproportionately large damage. The supplier shall be informed immediately in such an event. 7.1.7 Of the direct costs arising through post-performance, the supplier shall bear the costs of the replacement part including shipping if the complaint turns out to be justified. To the extent that the purchaser demands compensation for expenditures arising to him or recompensed to his customer by legal requirement, the compensation to be paid by the supplier shall be determined as follows: Compensation shall only be paid for removal and installations costs necessary for post- post-performance as well as transport costs. In determining the level of such compensation, the economic circumstances of the supplier, type, scope and duration of the business relationship as well as the degree of causation and any fault of the supplier and the installation situation of the delivery item concerned shall be appropriately taken into consideration in favour of the supplier. In particular, the compensation to be paid by the supplier shall be in an appropriate relationship to the value of the delivery item concerned as well as to the annual turnover between supplier and purchaser with regard to these delivery items. The obligation to pay compensation shall be excluded to the extent that the purchaser has, in turn, effectively limited liability towards his customer. Here the purchaser shall endeavour to agree limitations on liability in the legally permissible scope also in favour of the supplier. 7.1.8 Within the framework of statutory regulations, the purchaser has a right to rescind the contract if – taking account of the statutory exceptions – an appropriate period for post-performance of a defect has been set by the purchaser and passed without result. If the defect is immaterial, the purchaser only is entitled to an abatement of the contract price. The right to an abatement of the contract price is excluded in all other respects. Further claims are determined in accordance with Clause 8.20. 7.1.9 No warranty is assumed in the following cases, in particular: Minor deviation from the agreed condition, minor impairment of usability,, unsuitable or improper use, defective assembly or commissioning by the purchaser or third parties, natural wear and tear, defective or negligent treatment, improper maintenance, unsuitable operating media, chemical, electro-chemical or electrical influences – to the extent that they are not the responsibility of the supplier. 7.1.10 Guarantee promises by the supplier, particularly quality and durability guarantees, such as in delivery specifications, contract specifications, performance specifications, performance descriptions, bills of quantities or other documents are expressly excluded subject to the provisions in Clause 1.1, even if they are designated as such.. · 7.1.11 If there is improper reworking by the purchaser or a third party, the supplier shall not be liable for any consequences arising. The same applies to changes to the delivery item undertaken without agreement of the supplier. 7.1.12 The results on the supplier’s test bed determine the function and operation characteristics of the delivery items. The supplier does not assume liability for defects occurring through the installation conditions or improper operation and maintenance. 7.1.13 Post-performance, no matter in what form, under no circumstances shall represent acceptance of a claim accruing to the purchaser.

Defects in Quality. 7.1.1 The supplier shall, at his discretion, either repair or replace free of defects (repair or replacement delivery; hereinafter together: “?post-performance”?) at no charge all those parts which have turned out to be defective as the result of circumstances before the passing of risk. 7.1.2 The supplier shall be informed immediate in writing as soon as such defects are determined. 7.1.3 Parts which are the subject of complaint shall be returned to the supplier only on his request. Costs for the return shipment of the parts which are the subject of complaint are born by the purchaser. 7.1.4 Concerning replaced parts, the supplier is entitled to demand handing out and the transfer of title. 7.1.5 In the event of notice of defects, payments by the purchaser may only be withheld to an extent which is in proportion to the defects in quality which have occurred. The purchaser may only withhold payments if a notice of defect is asserted about which there is no dispute. If the notice of defect is unjustified, the supplier is entitled to demand compensation from the purchaser for costs which have arisen as a result. 7.1.6 In order to undertake all the work for post-performance deemed necessary by the supplier, the purchaser shall make the required time and opportunity available following consultation with the supplier. If he fails to do so, the supplier is released of liability for the consequences arising. The purchaser only has the right to rectify the defect himself or have it rectified by third parties and to demand compensation for the necessary costs from the supplier in the event of urgent cases when operational safety is at risk or to prevent disproportionately large damage. The supplier shall be informed immediately in such an event. 7.1.7 Of the direct costs arising through post-performance, the supplier shall bear the costs of the replacement part including shipping if the complaint turns out to be justified. To the extent that the purchaser demands compensation for expenditures arising to him or recompensed to his customer by legal requirement, the compensation to be paid by the supplier shall be determined as follows: Compensation shall only be paid for removal and installations costs necessary for post- post-performance as well as transport costs. In determining the level of such compensation, the economic circumstances of the supplier, type, scope and duration of the business relationship as well as the degree of causation and any fault of the supplier and the installation situation of the delivery item concerned shall be appropriately taken into consideration in favour of the supplier. In particular, the compensation to be paid by the supplier shall be in an appropriate relationship to the value of the delivery item concerned as well as to the annual turnover between supplier and purchaser with regard to these delivery items. The obligation to pay compensation shall be excluded to the extent that the purchaser has, in turn, effectively limited liability towards his customer. Here the purchaser shall endeavour to agree limitations on liability in the legally permissible scope also in favour of the supplier. 7.1.8 Within the framework of statutory regulations, the purchaser has a right to rescind the contract if – - taking account of the statutory exceptions – - an appropriate period for post-performance of a defect has been set by the purchaser and passed without result. If the defect is immaterial, the purchaser only is entitled to an abatement of the contract price. The right to an abatement of the contract price is excluded in all other respects. Further claims are determined in accordance with Clause 8.2. 7.1.9 No warranty is assumed in the following cases, in particular: Minor deviation from the agreed condition, minor impairment of usability,unsuitable or improper use, defective assembly or commissioning by the purchaser or third parties, natural wear and tear, defective or negligent treatment, improper maintenance, unsuitable operating media, chemical, electro-chemical or electrical influences – - to the extent that they are not the responsibility of the supplier. 7.1.10 Guarantee promises by the supplier, particularly quality and durability guarantees, such as in delivery specifications, contract specifications, performance specifications, performance descriptions, bills of quantities or other documents are expressly excluded subject to the provisions in Clause 1.1, even if they are designated as such. 7.1.11 If there is improper reworking by the purchaser or a third party, the supplier shall not be liable for any consequences arising. The same applies to changes to the delivery item undertaken without agreement of the supplier. 7.1.12 The results on the supplier’s 's test bed determine the function and operation characteristics of the delivery items. The supplier does not assume liability for defects occurring through the installation conditions or improper operation and maintenance. 7.1.13 Post-performance, no matter in what form, under no circumstances shall represent acceptance of a claim accruing to the purchaser.