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1.
TERMS OF PAYMENT
Payment terms are Net 30 days - No discounts. Payment shall be due
within thirty (30) Days from date of invoice (same as date of FOB)
unless otherwise mutually agreed upon in writing. Payment shall not
prejudice any claims due to omissions or shortages in shipment.
Buyer must make any such claim within thirty (30) days after receipt
of shipment.
2. BUYER'S CREDIT
Buyer shall be required to submit a signed application for credit
including D& B and/or tax identification number prior to issuance of
any credit limit or terms. Seller reserves the right to either
terminate any purchase order, agreement, or contract, (hereinafter
referred to as “contract”) or to suspend further deliveries under
any such contract, in the event Buyer fails to pay for any shipment
in accordance with the terms of payment. Should Buyer's financial
condition or responsibility become unsatisfactory to Seller, Seller
shall have the right to require cash payment or satisfactory
security in advance of the manufacture of goods as a condition for
any delivery of goods or for goods theretofore produced and
delivered.
3. TAXES AND DUTIES
Seller shall have the right to add to the price all taxes, excise or
other charges imposed by law on or incident to the production, sale,
transportation, or use of the goods sold under this contract that
Seller may be required to pay to or collect on behalf of any
federal, state or local governmental agency. Buyer must provide tax
exempt use certificate prior to purchase of all goods to Seller if
applicable.
4. PRICING
Seller has the right to change, at any time during the term covered
by any associated contract, the price, or terms of payment specified
herein, provided Seller has given Buyer at least fifteen (15) days
written notice of such change. Buyer's failure to serve Seller with
written notice of objection thereto prior to the effective date
thereof shall be considered acceptance of such change. If such
written notice of objection is served by Buyer, Seller has the
option to either immediately cancel this contract upon written
notice to Buyer, to continue to sell hereunder at the same price and
terms as were in effect at the time Seller gave notice of change, or
to suspend performance under this contract while pricing is being
resolved. If Seller desires to revise the price, or terms of payment
pursuant to this paragraph, but is restricted, to any extent,
against so doing by reason of any law, governmental decree, order or
regulation, or if the price or terms of payment then in effect under
this contract are nullified or reduced by reason of any law,
governmental decree, order or regulation, Seller shall have the
right to cancel this contract upon fifteen (15) days written notice
to Buyer. Upon receipt of purchase order from Buyer, Seller reserves
the right to increase all pricing on a quarterly basis due to
increase of raw material pricing, transportation charges and/or
factory, labor and overhead costs.
5. MINIMUM ORDER QUANTITIES AND LOT CHARGES
All materials manufactured have a minimum order quantity. Seller
reserves the right to increase order size or reject order due to
minimum purchase quantities on raw materials. In the event that
Buyer will not accept a minimum order quantity, a one time run lot
charge will apply.
6. BUYER FURNISHED RAW MATERIALS
Buyer assumes all responsibility for Buyer furnished raw materials.
Buyer furnished materials will not be accepted by Sellers without a
purchase order from Buyer, a detailed packing list and a minimum of
48 hours notice prior to delivery. Seller assumes no liability for
the transportation, storage, quality and finished product when using
Buyer furnished materials. All Buyer furnished materials will be
manufactured/coated on a best effort basis. In the event that the
Buyer furnished material is determined, at the sole discretion of
the Seller, to be non-conforming, Seller shall not be held liable
for any costs incurred as a result of non-conforming materials
provided by Buyer. Buyer shall be solely responsible for all such
cost. In addition, Seller shall not be responsible for any delays in
manufacturing that may occur as a result of non-conforming Buyer
furnished materials. All Buyer furnished materials, including
finished good, unused and/or non-conforming material will be
returned to the Buyer upon completion.
7. SAMPLE
ORDERS
Seller promotes the sampling and testing of materials. As such, a
sample charge and/or a minimum one time lot charge shall apply. All
sample orders are on a best effort manufacturing basis. It is the
Buyers responsibility to provide the Seller with all pertinent
information to qualify the program including, but not limited to,
quality assurance specifications, military specifications and
requirements.
8. QUOTATIONS NOT BINDING
Quotation as to fees, rates of duty, insurance premiums or other
charges provided by the Seller to the Buyer are for informational
purposes only and are subject to change without notice. Any such
quotations shall not, under any circumstance, be binding upon the
Seller unless the Seller agrees in writing to specifically undertake
the handling and/or transportation of the shipment at a specific
rate.
9. PATENTS
With respect to goods produced by Seller, Seller represents that
such goods, unless made specifically for Buyer according to Buyer's
specifications, do not infringe upon any valid U.S. patent. Buyer
agrees to promptly notify Seller of any claim or suit involving
Buyer in which infringement is alleged. In the event that any such
claim or suit arises whereby Seller is made a party to, Buyer agrees
that Seller shall have the authority to decide the best course of
action in defending and/or negotiating a settlement of such a claim
or suit. With respect to goods not produced by Seller, Buyer shall
hold Seller harmless and indemnify Seller from and against all
claims, loss or damage arising from infringement of any patent, by
reason of the purchase, sale or use by Buyer of goods delivered
hereunder. Seller reserves the right, without further liability or
obligation hereunder, to discontinue shipment of any goods, whether
or not produced by Seller, which appear to infringe upon any patent.
10. ASSIGNABILITY-CONTINUITY
Buyer shall not assign any contract, right or obligation hereunder
without Seller's express written consent. Any purported assignment
shall be void and ineffective and the contract shall continue to be
binding upon the parties and their successors.
11. QUALITY ASSURANCE, SPECIFICATIONS AND
STANDARDS
All product specifications including, but not limited to, quality
standards, packaging requirements and military specifications, must
be provided to the Seller by the Buyer upon issuance of the purchase
order. Upon receipt of any new purchase order, Seller reserves the
right to conduct a contract review prior to acceptance of the
purchase order. Any testing that, at the sole discretion of the
Seller, is deemed to be outside the range of normal quality
assurance testing, shall not be performed unless agreed upon in
writing by both parties with the Buyer incurring any and all costs
associated.
12. FORCE MAJEURE
Neither party shall be liable for any breach, nonperformance or
delay in performance due wholly or in part to any cause not in its
control or not avoidable by reasonable diligence. The following,
while not an exclusive list, shall be considered acts not within a
party's control or avoidable by reasonable diligence: acts of God
and nature, acts of war, civil riot, blockade or embargo, delays of
carriers, transportation shortages, fire, explosion, breakdown of
plant or equipment, strike, lockout, labor dispute, casualty or
accident, lack or failure of sources of supply or labor, raw
materials, power or excessive cost thereof, delays due to failures
of vendors or other sources of supply, or delays or failures to
perform caused by reason of law, regulation, ordinance, or
requirement or any other act of government authority, national,
state, or local, including court orders, judgments or decrees or any
other cause whatsoever. If, upon the occurrence of any such event,
Seller is unable to supply the total demand for the goods, Seller
may allocate its available supply of goods without obligation to
purchase similar goods from other sources, among itself and all of
its customers, including those not under contract, or such basis as
it determines to be equitable. Deliveries suspended under this
section shall be cancelled without liability, but all agreements
shall otherwise remain unaffected.
13.
LIMITATION OF LIABILITY
Within thirty (30) days after receipt of each shipment of goods
sold, Buyer shall examine such goods for any damages, defects or
shortages. All claims, including for alleged damaged or defective
goods due to packaging, shortages, negligence or any other cause
whatsoever, shall be deemed waived unless made in writing to Seller,
accompanied by an adequate sample of the damage and received by
Seller within thirty (30) days after Buyer's receipt of goods.
Failure to provide a written claim within the applicable time period
shall be deemed an absolute and unconditional waiver of such claim.
If Seller assumes liability of damaged or otherwise non-conforming
goods, the entire order must be returned to Seller prior to the
issuance of any credit.
BUYER'S EXCLUSIVE REMEDY SHALL BE LIMITED TO THE COST OF THE DAMAGED
OR OTHERWISE NON-CONFORMING GOODS. SELLER'S TOTAL LIABILITY FOR ANY
AND ALL LOSSES AND DAMAGES ARISING OUT OF ANY CAUSE WHATSOEVER
(WHETHER SUCH CAUSE BE BASED IN CONTRACT, NEGLIGENCE, STRICT
LIABILITY OTHER TORT OR OTHERWISE) SHALL IN NO EVENT EXCEED THE
PURCHASE PRICE OF THE GOODS PURCHASED. SELLER MAY, AT SELLER'S
OPTION, OPT TO REPAIR OR REPLACE ANY SUCH GOODS SO LONG AS SELLER
CAN REPAIR OR REPLACE SAID GOODS IN A REASONABLE PERIOD OF TIME. IN
NO EVENT SHALL SELLER BE LIABLE FOR BUYER FURNISHED ITEMS, OR
MATERIALS, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES RESULTING
FROM ANY SUCH CAUSE.
Buyer assumes all liability for any personal injury and/or property
damage connected with the handling, transportation, possession,
processing, further manufacturing, or other use or resale of all
goods purchased by Buyer, whether the goods are used singly or in
combination with any other material. Transportation charges for the
return of the goods shall not be paid for by Seller unless
authorized in writing in advance by Seller.
14. DISCLAIMER OF WARRANTIES
There are no warranties that extend beyond the description or
certification provided hereof, and Seller makes no warranty of any
kind, express or implied, whether for merchantability of fitness for
particular purpose, or otherwise. Buyer assumes all risk whatsoever
with respect to the use of the goods purchased, whether used singly
or in combination with other materials.
15. TERMINATION, REDUCTION IN QUANTITY,
RESCHEDULING DELIVERY
In the event Buyer desires to terminate any part or all of the work
to be done hereunder; or reduce the quantity of goods ordered, or
reschedule the delivery of any goods, Seller shall be entitled to
fair compensation for any costs incurred up to the point of
termination including any increased costs by reason of revisions and
changes in delivery schedule or any loss of anticipated profits. In
addition, Seller shall be entitled to compensation as per the
contract for articles which have been completed as of the time of
termination and any cost incurred by Seller in making settlement
hereunder.
16. TITLE AND RISK 0F LOSS
Title to, and all risk of loss of any material sold hereunder shall
pass to Buyer at the point of shipment. All shipments will be F.O.B.
shipping point unless otherwise specified on the face of the
invoice.
17. SHIPMENTS
The quantity shipped in any contract month may be limited by Seller
to either, (a) the average of the monthly qualities ordered by Buyer
hereunder for the preceding contract months, or (b) the maximum
quantity covered by this contract divided by the number of months in
the contract period. Seller shall not be bound to tender delivery of
any quantities for which Buyer has not given shipping instructions.
Shipments made short of requested quantities in any month shall be
carried forward and added to the subsequent month, without penalty
to Seller. Buyer must provide Seller with shipping instructions upon
issuance of purchase order prior to production. All shipment
arrangements must be scheduled and material must be shipped upon
completion of manufacturing. No material will be held by Seller's
shipping department for more than a 48 hour period, no exceptions.
In the event that the shipment has not left the Sellers facility
within 48 hours of completion of manufacturing, Seller reserves the
right to re-sell material given supply and demand. Seller also
reserves the right to arrange shipment on behalf of Buyer, assuming
no liability or responsibility for cost of delivery.
18. SHIPPING TOLERANCE
Unless otherwise stated on the face of the invoice hereof, Seller
may increase or decrease the quantity delivered by 10% and adjust
its invoice accordingly.
19. WEIGHTS AND CONTAINERS
In the case of bulk carload, tank car, tank truck or barge
shipments, shipper's weights shall govern unless proved to be in
error. Where shipment requires use by Seller of returnable
containers, title to such containers shall remain with Seller and a
deposit in the amount required by Seller must be made at the time
the invoice for the goods is paid. Such containers must be kept in
good condition, must not be used for any material other than that
shipped therein and must be returned within sixty (60) days from
date of shipment. On such containers being so returned in good
condition, a refund of the deposit will be made. If the containers
are not returned within sixty (60) days from date of shipment,
Seller shall retain the deposit fee as reimbursement and title to
said container shall thereupon vest in Buyer.
20. FAIR LABOR STANDARDS ACT
The material covered hereunder is warranted to have been produced in
compliance with the requirements of the Fair Labor Standards Act of
1938, and with all amendments, thereto.
21. MISCELLANEOUS
The validity, interpretation and performance of this contract shall
be governed and construed in accordance with the laws of the
Commonwealth of Massachusetts. This contract constitutes the full
understanding of the parties, and a complete and exclusive statement
of the terms of this agreement. No conditions, understanding or
agreement purporting to modify or vary the terms of this contract
shall be binding unless hereafter made in writing and signed by the
party to be bound, and no modification shall be effected by the
acknowledgement or acceptance of purchase order or shipping
instruction forms containing terms or conditions at variance with or
in addition to those set forth herein. No waiver by either Seller or
Buyer with respect to any branch or default or of any right to
remedy, and no course of dealing, shall be deemed to constitute a
continuing wavier of any other breach or default or of my right or
remedy, unless such waiver be expressed in writing signed by the
party to be bound. Buyer shall be liable for any legal or collection
fees and any other incidental expenses incurred as a result of
Buyer's default or breach of this Agreement.
IN WITNESS HEREOF, the parties hereto
have duly caused this Terms and Condition of Sale to be executed and
incorporated by reference to the contract as of the date and year
written below.
| SELLER |
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Lewcott
Corporation |
DATE_____________ |
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| BUYER |
COMPANY NAME |
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| ________________________ |
________________________ |
DATE_____________ |
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