Common use of Extent of Liability Clause in Contracts

Extent of Liability. 2.1 The Supplier is responsible in full for maintaining the agreed quality of the products. The Supplier is responsible for the unrestricted quality assurance of the products, including the comprehensive testing of the products. The Supplier guarantees that the products are free from faults and that they comply with the agreed specifications and recognized technical standards. 2.2 Depending on agreement, the method of calculating warranty charges will be either a simplified process with specified lump sums for every product complained of and accepted as defective by the Supplier, or by the individual calculation of all costs incurred by XXXXXX and their customers associated with the defective product. 2.3 The two methods of calculation differ in that, with agreed lump-sum figures, the Supplier bears only the costs in the lump-sums. With individual calculations, the Supplier must reimburse all costs which are supported by receipts. This includes the internal and external costs incurred in certifying the defect and the expenses involved in detecting and eliminating the defect. If the individual billing method is applied, the Supplier is always liable without limitation in accordance with legal stipulations. 2.4 If the lump sum method is agreed in the application of the warranty agreement, Section XV Paras. 4 to 7 of XXXXXX’x General Terms and Conditions of Purchase (dated November 2006) are replaced in full by the terms set out below. If the individual billing method is agreed, the Section and paragraphs continue to apply in full.

Extent of Liability. 2.1 The Supplier is responsible in full for maintaining the agreed quality of the products. The Supplier is responsible re- sponsible for the unrestricted quality assurance of the products, including the comprehensive testing of the products. The Supplier guarantees that the products are free from faults and that they comply with the agreed specifications and recognized technical standards. 2.2 Depending on agreement, the method of calculating warranty charges will be either a simplified process with specified lump sums for every product complained of and accepted as defective by the Supplier, or by the individual calculation of all costs incurred by XXXXXX and their customers associated with the defective product. 2.3 The two methods of calculation differ in that, with agreed lump-sum figures, the Supplier bears only the costs in the lump-sums. With individual calculations, the Supplier must reimburse all costs which are supported sup- ported by receipts. This includes the internal and external costs incurred in certifying the defect and the expenses ex- penses involved in detecting and eliminating the defect. If the individual billing method is applied, the Supplier Sup- plier is always liable without limitation in accordance with legal stipulations. 2.4 If the lump sum method is agreed in the application of the warranty agreement, Section XV Paras. 4 to 7 of XXXXXX’x General Terms and Conditions of Purchase (dated November 2006) are replaced in full by the terms set out below. If the individual billing method is agreed, the Section and paragraphs continue to apply in full.