Common use of Inspection, Testing, Acceptance and Rejection Clause in Contracts

Inspection, Testing, Acceptance and Rejection. 4.1 The Seller shall provide, on request by the Buyer, tests in respect of the Goods to ensure compliance with their specifications. If so required, the Seller shall at its own cost furnish the Buyer a proof note or a certificate satisfactory to the Buyer to that effect. 4.2 All Goods delivered may be subject to inspection and/or testing by the Buyer and shall be deemed to have been accepted only when: (a) the Authority Representative or any person duly authorized by him, furnishes the Seller with an acceptance note; or (b) a period of 30 working days from the date of delivery has expired and the Goods have not been rejected by the Buyer, whichever date is the earlier. The time taken on the part of the Buyer in inspecting or testing the Goods shall not prejudice the Buyer’s right to reject the Goods or terminate the Purchase Order in whole or in part. 4.3 If the Buyer becomes aware of any shortfall in the Goods delivered, it shall notify the Seller. Upon being so notified, the Seller shall at the Buyer’s option either: (a) make an immediate additional delivery to make up the deficiency; or (b) issue a credit note for the shortfall. 4.4 The Buyer may reject any Goods delivered which are not in accordance with the Contract or which in the Buyer’s reasonable opinion do not conform with their specifications or which are defective or damaged, or not of merchantable quality or fit for the purpose for which they are reasonably intended or required. 4.5 Upon receipt of notice from the Buyer of the rejection of any Goods, the Seller shall at its own cost remove the same within 48 hours or the time frame specified by the Buyer. If the Seller fails to remove any rejected Goods within such period, the Buyer may dispose of the Goods as it sees fit and no liability shall attach in respect of such disposal. The Seller acknowledges and accepts that the Buyer bears no responsibility whatsoever for the custody of the rejected Goods from the time they are delivered to the Buyer to the time they are removed or disposed of. 4.6 Without prejudice to the Buyer’s other rights and remedies, statutory or otherwise, in the event of rejection the Buyer shall be entitled to one or more of the following remedies: (a) to require the Seller to supply replacement Goods; (b) to require the Seller to refund the price or any part of the price which has already been paid for the rejected Goods; and/or (c) obtain alternative supplies (whether equivalent or otherwise) from any other supplier and recover from the Seller any costs incurred in obtaining substitute Goods. 4.7 Acceptance of any partial delivery of Goods under any Purchase Order shall not bind the Buyer to accept any further delivery not conforming to the Buyer’s requirements.