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VII. Answer the following questions




GENERAL PROVISIONS

INSPECTION AND TESTS

EXPORT LICENCE

GUARANTEE

5.1. The Sellers guarantee that the goods are in all respects in accordance with

the description, technical conditions and specifications contracted for, that they are free from defects in material, design and workmanship and that they conform to the highest world standards and first rate workmanship.

5.2. Should the goods prove defective within 2 months of the date of putting the equipment into operation but not more than 18 months of the date of shipment, the Sellers undertake:

a) to remedy the defects or to replace the faulty goods, freight prepaid, at

the Buyers option and free of charge;

b) or to refund the value of the goods paid by the Buyers.

 

6.1. The Sellers shall bear all cares and expenses connected with the export licence for delivery to the Russian Federation of the equipment with the scope stipulated by the Contract.

6.2. Should the licence not be obtained or revoked by the appropriate authorities or should its validity expire prior to the complete execution of the Contract, the Buyers are entitled to cancel the non-executed part of the contract or the whole contract.

 

7.1. The Buyers have the right to send their Inspectors to the Sellers’ works to examine and inspect the Workmanship of the contracted equipment.

7.2. If the Buyers’ Inspector cannot be present at the tests or waives the inspection the Sellers are entitled to perform the tests in the absence of the Buyers’ Inspector.

7.3. If the tests have proved that the equipment meets the requirements specified in the contract the Sellers shall submit to Buyers the Tests Report so they could obtain the Release Note for Shipment.

7.4. The Sellers shall render any assistance that can be required by the Buyers’ Inspector and shall place at his disposal the necessary facilities and labour free of charge.

7.5. The inspection and/or tests shall not free the Sellers from their liabilities and shall not prejudice the rights of the Buyers contained in the clause «Guarantee».

7.6. The final inspection and tests shall take place in the Russian Federation at the works of the Buyers’ customers after the complete installation and adjustment of the equipment.

 

8.1. Specification and appendices to the present contract are to be considered integral parts of the contract.

8.2. Any amendment and/or alteration to this contract shall be issued in writing only and be binding after it is duly signed by the parties.

1. What are the Sellers’ obligations under FOB?

2. What do the prices include?

3. Who is to pay the cost of sea freight and insurance: the Sellers or the Buyers?

4. When do the title to the goods and the risk of accidental damage pass from the Sellers to the Buyers? (give all the cases)

5. What date is considered to be the date of delivery?

6. What ways of delivery are given in Clause 1?

7. Which party is to be held responsible for the damage to the goods due to inadequate or improper packing?

8. What is to be inserted in each case?

9. In what language are the cases to be marked?

10. In what case shall the Buyers’ Inspector furnish the Sellers with the Release Note for Shipment?

11. What shall the Sellers advise the Buyers of before the shipment of the goods?

12. Which party to the contract is to book space?

13. What shall the Sellers notify the Buyers of after the shipment of the goods?

14. What are the Sellers to pay the Buyers if there is a delay in delivery?

15. What sum should not the agreed and liquidated damages exceed?

16. In what case do the Buyers have the right to reject the goods?

17. In what case do the Buyers have the right to cancel the contract?

18. What is the way of penalty payment?

19. Does the Buyers’ rejecting the delayed goods free the Sellers from the liability to pay agreed and liquidated damages?

20. What do the Sellers guarantee?

21. What are the Sellers obliged to do if the goods prove to be defective within the guarantee period?

22. What is the guarantee period?

23. At whose expense are the Sellers to remedy the defects?

24. Which party to the contract shall obtain an export licence for the goods?

25. At whose expense is the licence to be obtained?

26. What are the Buyers entitled to do in case the licence is not obtained or is revoked by the appropriate authorities?

28. What does waiving the inspection imply?

29. What is a Tests Report necessary for?

30. Do the inspection and tests prejudice the rights of the Buyers under the Guarantee clause?

31. Where and when is the final inspection to take place?

32. What shall the parties to the contract do if they want to amend the con­tract?




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