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. The Sellers guarantee:
1. a) that the equipment corresponds to the highest achievements of the world technology for the given type of equipment;
b) high quality of the materials used for the manufacture of the equipment; first-rate workmanship and high quality of the technical performance and assembly;
c) that the equipment 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, the Sellers undertake immediately, at the Buyer’s request, to eliminate free of charge the detected defects by repairing or replacing the defective parts.
4. The defective equipment will be sent back to the Sellers at their expense 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 are to be paid by the Sellers.
6. The above-said guarantee period in regard to the repaired or newly supplied equipment will start again from the moment of putting it into operation.
7. If the Sellers fail to eliminate the 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.
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.
Inspection and tests
Inspection and tests play a very important role in business relations. They help to avoid many problems, which can arise in respect of the quality of the goods in future. Therefore before shipment the Sellers are to test the goods and the Buyers have the right to inspect and check the goods. They usually test the workmanship and quality of the contractual equipment and the materials used.
Inspection and tests are carried out at the expense of the Sellers or their subcontractors. It is stipulated in the Contract.
The Buyers have the right to send their inspectors to the Sellers their subcontractors and their subcontractors' premises.
The Seller is to notify the Buyer of the readiness of the goods for the inspection and test. The Notification of Readiness is to be sent to the Trade Mission in the Sellers' country, and the Buyer is to be provided with a copy. The Sellers must notify the Buyers not later than 15 days before the beginning of the test.
The Contract is to stipulate that if the Buyers or their representatives within 15 days from the date of receipt of the Sellers' notification that the goods are ready for shipment, inform the Sellers that the Buyers' inspector cannot be present at the test, or if the Sellers fail to receive any information within the said period, the Sellers are entitled to perform the test without the Buyers' inspector.
The Sellers may render any assistance that can be required in obtaining visas by the Buyers' inspector and may at their expense furnish the Buyers' inspector with flats or apartments at the hotels during their stay. The Sellers are to place at their expense at the disposal of the Buyers' inspector all the facilities required for inspection of the equipment and materials as well as an interpreter if necessary.
If the tests have proved that the equipment meets the requirements specified in the Contract, the Sellers shall present to the Buyers the Test Report
If during the tests and inspection any infringements in the technical conditions of the Contract or poor quality of the goods are found, the Sellers shall eliminate all the defects without delay or replace the defective goods at their expense. When the defects have been eliminated, the equipment shall be tested again if required by the Buyers.
The final tests and acceptance of the goods are to be performed in the Buyers' country after finishing the installation and adjustment of the equipment and achieving quantity and quality requirements stipulated in the Contract.
After the tests have been performed, "Report on the Final Test and Putting the Equipment into Operation" is made and signed by the Sellers and the Buyers' representatives, the detailed results of the tests are put in this report.
The date of signing this Report is considered to be the date of putting the equipment into operation.