Common use of Liability for Defects Clause in Contracts

Liability for Defects. 1. Unless otherwise agreed, if defective goods are delivered, the buyer may demand the following, provided that the applicable legal requirements and those indicated below are met: a) Before the start of production (processing or installation), the buyer shall firstly give the supplier the opportunity to sort out the defective goods and to remedy the defects or to provide a subsequent (replacement) delivery, unless this is unreasonable for the buyer. If the supplier is unable to accomplish this, or does not do so without delay, the buyer may withdraw from the contract in this respect without setting a further deadline and return the goods at the supplier’s risk. In urgent cases the buyer may, after consultation with the supplier, remedy the defects itself or have this work done by a third party. Any costs thus incurred shall be borne by the supplier. In the event of another delivery of the same defective goods, the buyer shall, after issuing a written warning, also be entitled to withdraw from the contract in respect of the goods not yet delivered. b) If the defect is not detected until after the start of production despite compliance with the obligation pursuant to section IV (Notification of defects), the buyer may: - in accordance with section 439(1), (3) and (4) of the German Civil Code (Bundesgesetzbuch, BGB) demand subsequent performance and reimbursement of the associated necessary transportation costs (excluding towing charges) and dismantling and installation costs (labor costs; material costs where agreed). - or reduce the purchase price. c) In the event of a culpable breach of obligation over and above the supply of defective goods (e.g. obligations of information, consultation or examination), in accordance with section XI the buyer may demand compensation for the resulting consequential damages and for the consequential damages paid by the buyer to its customer under the law. Consequential damage is damage to legally protected interests other than the goods themselves, which the buyer has suffered as a result of the delivery of defective goods. The buyer may assert further claims regarding expenses and compensation for damages based on the delivery of defective goods arising from section 437 BGB or directly from the regulations cited therein only if this has been contractually agreed. Section XV subsection 1 shall apply to new agreements. 2. Upon request, the parts to be replaced by the supplier shall be made available to the supplier at its cost by the buyer without delay. 3. Unless agreed otherwise, any claims arising from liability for defects shall become time barred after 24 months from the vehicle’s first registration or the installation of the replacement parts, but at the latest after 30 months from delivery to the buyer. Unless agreed otherwise, goods supplied for commercial vehicles are subject to the statutory period of limitation. 4. Warranty claims do not arise if the defect can be attributed to violation of operating, maintenance or installation regulations, unsuitable or improper use, incorrect or negligent handling, natural wear and tear, or interference by the buyer or third parties with the goods delivered. 5. In the case of defective deliveries, claims of the buyer arising from the German Product Liability Act (Produkthaftungsgesetz), tort law, or conducting business without authority shall remain unaffected by this section X. Quality and durability guarantees must be explicitly stated individually as such in writing.

Liability for Defects. 1. Unless 10.1 In the event of delivery of defective goods, the Purchaser may, if the respective statutory requirements and the requirements set out below are met and unless otherwise agreed, if defective goods are delivered, the buyer may demand the following, provided that the applicable legal requirements and those indicated below are met: a) Before the start 10.1.1 Prior to commencement of production (processing or installation), the buyer Purchaser shall firstly first give the supplier Supplier the opportunity to sort out the defective goods and to remedy the defects defect or to provide make a subsequent (replacement) delivery, unless this is unreasonable for the buyerPurchaser. If the supplier Supplier is unable to accomplish this, do so or does not fails to do so without undue delay, the buyer may withdraw from Purchaser shall be entitled to rescind the contract in this respect without setting a further deadline time limit and to return the goods at the supplier’s Supplier's risk. In urgent cases the buyer cases, he may, after consultation with the supplier, remedy the defects itself defect himself or have this work done it remedied by a third party. Any The supplier shall bear any costs thus incurred shall be borne by the supplierarising in this connection. In the event of another delivery of If the same defective goodsgoods are repeatedly delivered defective, the buyer shall, after issuing a written warning, also purchaser shall be entitled to withdraw from the contract after written warning in respect the event of repeated defective delivery also for the goods not yet deliverednon-fulfilled scope of delivery. b) If 10.1.2 If, despite compliance with the obligation under No. 4 (notification of defects), the defect is not detected discovered until after the start of production despite compliance with the obligation pursuant to section IV (Notification of defects)production, the buyer customer may: - in accordance with section 439(1), (3) and (4) of the German Civil Code (Bundesgesetzbuch, BGB a) demand subsequent supplementary performance and reimbursement of the associated necessary transportation transport costs (excluding towing chargescosts) and dismantling and installation costs (labor labour costs; material costs where if agreed). - or ) necessary for the purpose of supplementary performance in accordance with section 439 paragraphs 1, 3 and 4 of the German Civil Code (BGB) or b) reduce the purchase price. c) price.10.1.3 In the event of a culpable breach of obligation over and above duty going beyond the supply delivery of defective goods (e.g. obligations in the case of an obligation to provide information, consultation advice or examination), in accordance with section XI the buyer customer may demand compensation for the resulting consequential damages and for damage as well as the consequential damages paid damage reimbursed by the buyer customer to its a customer under in accordance with the lawlaw in accordance with No. 11. Consequential damage is the damage to legally protected interests other than suffered by the goods themselves, which the buyer has suffered customer as a result of the delivery of defective goodsgoods to other legal assets than the goods themselves. The buyer may assert Purchaser shall only be entitled to further claims regarding for expenses and compensation for damages based on due to the delivery of defective goods arising from section under Section 437 BGB of the German Civil Code (BGB) or directly from under the regulations cited provisions set out therein only if this has been contractually agreed. Section XV subsection 1 No. 15.1 shall apply be observed in the case of new agreements to new agreementsbe concluded. 2. Upon request, the 10.2 The parts to be replaced by the supplier Supplier shall be made available to the supplier at its cost Supplier by the buyer Purchaser without delaydelay upon request and at the Purchaser's expense. 3. Unless agreed otherwise, any claims 10.3 Claims arising from liability for defects shall become time statute-barred after 24 months from after the vehicle’s first registration of the vehicle or the installation of the replacement spare parts, but however, at the latest after 30 months from after delivery to the buyer. Unless agreed otherwise, goods supplied for commercial vehicles are subject to the statutory period of limitationcustomer. 4. Warranty claims do 10.4 Claims for defects shall not arise if the defect can be attributed is attributable to violation of operating, maintenance or and installation regulationsinstructions, unsuitable or improper use, incorrect faulty or negligent handling, handling and natural wear and tear, or interference tear as well as interventions in the delivery item carried out by the buyer customer or third parties with the goods deliveredparties. 5. 10.5 In the case event of defective deliveries, claims of the buyer arising from Purchaser under the German Product Liability Act (Produkthaftungsgesetz)Act, tort law, or conducting business and management without authority shall remain unaffected by this section X. Quality the provisions here under No. 10. Guarantees of quality and durability guarantees must be explicitly stated individually expressly designated as such in detail in writing.