Packing and marking

Packing and marking are important clauses of a Contract. Packing is a means, which helps to keep goods safe during transportation and storaging. There are a lot of kinds of packing. For example, some goods have inside and outside packing: perfume has inside packing (a bottle) and outside packing (a box). Packing can also be made of different materials: paper, glass, plastic, cardboard, iron and so on. Goods must be packed in full conformity with the specifications of each particular type. You can't transport glass in paper, it needs a firm kind of packing, or packing of food must keep it dry. And if packing correctly conforms with the features of goods, the latter would arrive safe and sound and can even withstand rough handling.

In a Contract all the above characteristics of packing should be stated. Improper or faulty packing may cause damages and breakages of goods.

Marking is usually made on packing. It must include the name and address of the Buyer, the Seller and the manufacturer of the goods, numbers of standards or technical documentation, numbers of roads, kinds of transport and some other details concerning this particular consignment of goods: weight, quantity and others. There are also various kinds of marking for goods that need careful handling, for example, WITH CARE, TOP, DO NOT TURN OVER, USE NO HOOKS and so on. There may be also pictures in marking. Some of them require careful handling too: "fragile", "avoid heat", "open here", etc.

There is also marking that states that the products or their packing are ecologically pure and don't make harm to environment: "green point", "produced of used materials", "this marking says for itself”, etc. Marking should warn of poisoned and harmful materials contained in packing.

If goods are transported by sea, their packing must be seaworthy and marking should be made with indelible paint. It is also very important that marking should be made right. Wrong marking can lead to short-shipment and short-delivery, improper handling, misdirection of the goods and many other unpleasant problems. Usually all these characteristics are stipulated in standards. Contracts only contain numbers of appropriate standards.

Guarantee clause of a contract

The Guarantee Clause is one of the most important points of the Contract made on the sale and purchase of different machinery and equipment. Guarantee clauses may differ but they have features. Here is a typical Guarantee Clause. The Sellers guarantee:

1. a) that the equipment supplied corresponds to the highest achievements of the world technics for the given type of equip­ment;

b) high quality of the materials being used for the manufacture of the equipment (spare parts); first-rate workmanship and high quality of the technical performance and assembly;

c) that the equipment supplied (spare parts) is manufactured in full conformity with the conditions of the present Contract;

d) completeness of the delivered equipment in accordance with the conditions of the Contract.

2. The guarantee period of the normal operation of the equipment is to be 12 months from the date of putting the equipment into operation, but not more than 24 months from the time of its delivery.

3. If during the guarantee period the equipment proves to be defective or not in conformity with the terms and conditions of the Contract, the Sellers undertake immediately, at the Buyer’s request, to eliminate free of charge the detected defects by repairing or replacing the defective parts of the equipment with the new ones.

In this case the Sellers should pay the agreed and liquidated damages in accordance with the Contract terms at the rates stipulated in the contract starting from the date of the claim and up to the date when the defects have been eliminated or the new equipment has been supplied.

However, the amount of the penalty shouldn’t exceed 10% of the contractual price of the equipment.

4. The defective equipment will be sent back to the Sellers at their request and for their account within the dates agreed by the parties.

5. All transport expenses, insurance and other expenses, con­nected with return or replacement of the defective goods on the territory of the Buyers’ country and of a transit country as well as on the Sellers' territory are to be borne by the Sellers.

6. The above-said guarantee period in regard to the repaired equipment or newly supplied equipment will start again from the moment of putting it into operation.

7. If the Sellers fail to eliminate the claimed defects at the Buyers' request immediately or within 30 days after the date of the claim, the Buyers will have the right to eliminate the defects on their own account, the Sellers being charged with the normal actual expenses.

Small defects, the elimination of which is urgent and does not require the presence of the Sellers, will be repaired by the Buyers charging the Sellers with the normal actual expenses.

8. If, while considering the claim or eliminating the defect, it will be stated that the defect cannot be eliminated or the replacement of the goods cannot be done within the dates acceptable to the Buyers the goods may be used by the Buyers without the elimination of the defect, the claim may be settled at the request of either party by means of downward revision of the price of the equipment within the rates agreed by the parties.

In case of impossibility for the Buyers to use the supplied equipment the Buyers will have the right to cancel the Contract in part of the said equipment or in whole.