Common use of Liability of the supplier Clause in Contracts

Liability of the supplier. We have a right to claim for compensation of all damages or losses caused by the Supplier in connection with a delivery. This applies in particular to the futile expenditure of materials and wages as a result of hidden defects, as well as increased cost to meet own delivery dates and other consequential damages arising from defects. This obligation to provide compensation does not apply, if the Supplier furnishes proof that the Supplier is not at fault, unless the Supplier is subject to strict liability based on statutory provisions. If due to a defect that affects a whole product series, the exchange of a whole series of goods delivered under this agreement or of our products into which goods delivered under this agreement have been integrated is required, e.g. because in the individual case a defect analysis is not economically feasible, not possible or not reasonable, the Supplier will also compensate for the costs that arise regarding the portion of the series that is free from technical defects. If a defect originating from the Supplier’s sphere of service causes a product liability on the part of us, the Supplier will indemnify us from and against any product liability. The Supplier is obligated to bear all costs arising from such product liability, including any costs and expenses arising from product recalls. The Supplier is also liable for damages caused by missing or insufficient safety measures. If the Supplier is permitted to use, process or work on plants or components of plants, this does not affect the Supplier’s liability, if the Supplier damages a plant or a component of a plant.