Common use of PROPERTY AND RISK Clause in Contracts

PROPERTY AND RISK. 38.1 Title to the Goods shall pass to the University at the time of payment, provided that such passing shall not prejudice either the University’s right to reject for non-conformity with Specification and shall not prejudice any other rights that the University may have under the Contract. However, where advance or progress payments are made, title but not risk shall pass to the University as soon as items are allocated by the Seller to the Contract. All items so allocated shall be adequately marked and recorded as being the property of the University, and where such items are stored on the Seller’s site, held in a separate bonded area suitable for such storage purposes. 38.2 Where advance or progress payments are to be made the University shall have the right to require that a Banker’s Guarantee/Performance Bond in the University’s favour, and in a form and standard and incorporating wording that is acceptable to the University, shall be provided in the full value of any such advance and/or progress payments made or to be made. Such requirement shall be stated on the Purchase Order or in the Attachment to the Contract, and any costs incurred by the Seller of the provision of such Banker’s Guarantee/Performance Bond shall be for the Seller’s account and deemed to be included in the Price. 38.3 Unless otherwise stated in an Attachment, risk in the Goods and/or any parts, stages or portions of the Installation shall pass to the University upon Delivery of the Goods and/or any parts, stages or portions of the Installation to the University.