Thursday 19 January 2017

SAMPLE CONDITIONS AND WARRANTIES OF SALE OF GOODS



NEEMA HARDWARE

DELALERS IN SUPPLY OF BUILDING AND HARDWARE MATERIALS


P.O BOX, 667788 WANJOHI.
TEL: 0777890878.
         0768543452
LOCATION: Kiuku Building, Room 546 and 547, Nakuru.

TERMS AND CONDITIONS OF SALE
1.      Definitions
In these Terms and Conditions, unless the context requires otherwise, the following expressions shall have the following meanings:
Ø   “Counter Offer” an offer made in response to a previous offer to the other party during negotiations for a final contract.
Ø  “Customer” The party, named as Customer in the Order Acknowledgement and/or invoice;
Ø   “Goods” The goods which are the subject of the Order Acknowledgement including all instruction leaflets,  manuals, drawings, illustrations and specifications provided by Neema Hardware to the Customer;
Ø  “Neema Hardware” Neema Hardware - supplying the Goods.
Ø  “Offer” an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed to.
Ø  “Order Acknowledgement” Neema Hardware’s official written order acknowledgement of Customers order or Neema Hardware’s invoice whichever of these documents is issued to Customer by Neema Hardware first;
Ø  “Order Confirmation” confirmation that the Order has been received and/or booked.
Ø  "Sale” Transfer of the property in the goods to a buyer for a money consideration
Ø  “The Agreement” The agreements, warranties, conditions, representations and other terms set out in these Conditions and in the Order Acknowledgement;
Ø  “These Conditions” These Standard Conditions of Sale;

2.      Application and variation of this terms and conditions
a)      This terms and conditions together with any agreement on Order Acknowledgement shall be deemed to apply in all agreements for the sale of any goods or provision of any services by Neema Hardware to a customer.
b)      This terms and conditions shall apply in the place of, prevail over and take precedence over any terms and conditions contained or referred to elsewhere or implied by trade custom, practice or course of business dealings.
c)      No variation of this terms and conditions shall be inferred, or where inferred and acted upon, shall operate against Neema Hardware, unless the variation was expressly agreed upon by Neema Hardware.
3.      Formation of a contract and cancellation
a)      Neema Hardware’s advertisements, display of goods for sale, price lists, catalogues and quotations do not constitute offers made by Neema Hardware unless they are expressed to be fixed quotations remaining open for a specified period of time, and Neema Hardware reserve the right to withdraw or revise the same at any time prior to the Order Acknowledgement.
b)      Without any prejudice to section 2 (a) above, any offers made by Neema Hardware shall only be held against Neema Hardware with regards to performance if the same is accepted by the person to whom the offer was made, or by his agents.
c)      Unless otherwise agreed upon as between Neema Hardware and the party concerned, any conditional acceptance of an offer by Neema Hardware shall not operate as an offer but as a counter offer, and Neema Hardware shall not be liable to perform the contract unless it has expressly accepted the counter offer by Order cknowledgement.
d)     Without any prejudice to section 2 (c), an agreement will be deemed to exist as between Neema Hardware and the party in question if either Neema Hardware or that other party has expressed willingness, either orally, in writing or by conduct to contract and, Neema hardware has made delivery of the goods subject of the agreement to that other party and the party has accepted the delivery, or  that other party has by way of payment acknowledged existence of the agreement and the payment has been accepted by Neema Hardware.
e)      Nothing in section 2 (d) shall be construed against Neema Hardware unless it is clear that under the circumstances Neema Hardware intended to enter into an agreement of sale.
f)       Customer shall not cancel an order made to Neema Hardware unless with the previous written consent of Neema Hardware. Such consent may be made conditional on payment by the Customer of an appropriate charge. No other obligation or agreement relating to sale of goods or services is binding on Neema Hardware unless set out in the Agreement or in an amendment or an addition thereto duly agreed to in writing by Neema Hardware.
4.      Documentation and specification
a)      All drawings, designs, specifications and particulars of weights and dimensions submitted by Neema Hardware remain the property of Neema Hardware and are intended merely to describe the Goods generally. They are not to be regarded as a warranty, representation or contractual term unless it is expressly so stated in the Order Acknowledgement.
b)      In an agreement for sale by sample, a Customer shall have the right to a reasonable opportunity to compare the bulk with the sample and shall be entitled to reject the goods if there is a reasonable ground to show that the bulk does not correspond with the sample. Reasonable opportunity shall in each situation depend upon the current circumstances, giving due regard to the terms agreed upon in the Agreement between Neema Hardware and the customer.
c)      Customer shall ensure timely supply of information and free issue material as appropriate to enable Neema Hardware to meet delivery dates.
d)     Neema Hardware has a policy of continuous improvement on its products, and reserves the right to alter the specification of standards accordingly.


5.      Delivery
a)      Delivery of goods sold to a customer is at the time, place and in the manner agreed upon in the Agreement.
b)      Where the Agreement and the Order Acknowledgement does not, in precise and clear terms, indicate the terms of delivery of goods sold by Neema Hardware, all sales are Ex Strata depot, and unless otherwise expressly or impliedly indicated, delivery of goods to Customer shall be within 30 days from the date of the Order Acknowledgement.
c)      Notwithstanding and without any prejudice to section 7 (b), the Delivery Period does not begin to run before Neema Hardware accepts an Order and issues an Order Acknowledgement. The Delivery Period begins to run when Neema Hardware receives all information necessary for execution of the Order and/or Receives an Order’s installment payment and/or the Goods are specifically appropriated to the Agreement, whichever happens last.
d)     In case the Customer must approve a Delivery Schedule, a delivery period does not begin to run until Neema Hardware receives approval of the Delivery Schedule from the Customer.
e)      If the Customer is unable to take physical custody of the Goods on the agreed upon delivery date, Neema Hardware will have the right to store the Goods at the Customer’s expense, without modifying the terms of payment agreed upon in the Agreement. Storage expenses will be calculated to include any compensation for late payments and for safeguarding the goods.
f)       Neema Hardware shall reserve the right to be excused from the obligation to deliver goods in time, if prompt delivery becomes impracticable because of an unforeseeable and unavoidable obstacle; including but not limited to, labor strikes, riots, tool malfunctions, fires, natural disasters, acts of God, war, earthquakes, floods, accident and other events of a similar nature such as bad weather, supply difficulties, unforeseeable market trends, and so on. It is expressly agreed that no force mjeure event beyond either party’s control may relieve the Customer from its primary obligation to make timely payments to Neema Hardware in accordance with the Agreement.
g)      Customer shall inspect the goods on receipt. Neema Hardware shall be under no liability in respect of damage to goods or incomplete delivery (or in the case of missing or undelivered goods) unless customer’s written claim is received by Neema Hardware within 2 days of receipt of the goods, including evidence of shortage or defect as Neema Hardware may request.
h)      Any period or date of delivery stated in the Agreement is intended as an estimate only and is not a contractual commitment.
i)        Neema Hardware may deliver the Goods in one or more installments. Where delivery is effected by installment each installment shall be treated as a separate contract. Failure by Neema Hardware to make any delivery or part delivery in accordance with the Agreement or any claim by Customer in respect of such delivery or part delivery shall not entitle Customer to reject the balance of the Goods agreed to be purchased by Customer. At Customer’s request, Neema Hardware may consent to postponement of delivery beyond the delivery date, subject to Customer assuming the risk in the Goods and paying storage charges; Neema Hardware reserves the right on the original delivery date/milestone to invoice the order value.
j)        At the request of Customer, Neema Hardware shall as agents for Customer arrange for carriage to the destination specified in Customer’s order on such terms as to carriage as Neema Hardware considers appropriate, unless Customer specified otherwise, and Neema Hardware shall invoice Customer all carriage costs incurred. Section 32(2) of the Sale of Goods Act Cap 31 shall not apply to the Agreement. Customer shall meet the cost of any special packaging requested by Customer or any packaging rendered necessary by delivery by any means other than Neema Hardware’s normal means of delivery.
k)      In the absence of instructions as to the place of delivery, or in case of impossibility of dispatching or transporting the goods for reasons independent of the will of Neema Hardware and beyond the control of Neema Hardware, delivery will be deemed to occur upon notice of the Goods availability, the Goods thereupon being at the Customer’s disposal in Neema Hardware’s place of business and Neema Hardware reserving the possibility of invoicing storage expenses. Neema Hardware, having met its part of the delivery obligation, will then issue the corresponding invoice and the payment period will be 30 days beginning from the date of the issue of invoice to Customer.
l)        Unless otherwise requested by the Customer, Neema Hardware will select the means of transport considered most convenient and economically sound for dispatching the Goods on behalf of and as per the instructions of the Customer, without any kind of responsibility being incurred by Neema Hardware as a result thereof.
m)    In no circumstances shall a delay of delivery be deemed to justify the termination or cancellation of an Order.
6.      Price and price variation
a)      The Prices for the Goods and Services shall be as set out in the Order Acknowledgement and shall remain valid for 30 days from date of Order Confirmation. All Customs and Excise duties, import or export duties and all other taxes, tariffs and surcharges of any nature whatsoever now or hereafter levied or imposed in any country or territory either directly or indirectly in respect of the sale, supply, delivery or use of the Goods or payments for them or upon freight or other charges shall be borne by Customer and except as stated in the Order Acknowledgement are additional to the prices therein stated.
b)      If between issue of Order Acknowledgement and date of delivery the price payable by Neema Hardware for significant material items included in the goods, shall have increased, Neema Hardware may increase the prices of such Goods and shall in writing so notify the Customer, who shall accept the Goods at the new price.
c)      Prices are always stated as net amounts. All costs of packing, handling, shipping, (whether surface, maritime orair), placing on board, insuring, etc., will be invoiced in addition. The Customer will pay for all rights, taxes and other official charges, as well as the duties and expenses for customs formalities for import of Goods and, if necessary, transit abroad. The Customer will advance to the Neema Hardware whatever part of said costs,charges or expenses the latter may be required to pay, so that the amount paid to and retained by the Neema Hardware is the price net of taxes. The taxes due at the time of invoicing are invoiced and payable in full at the time ofdelivery. To take advantage of provisions suspending the payment of taxes, the Customer may have to provide the Neema Hardware with the exoneration documents officially required at the time it places its Order. Late submission of said documents shall not be used by the Customer to withhold payment of invoices in accordance with the Contract, including taxes, whether in whole or in part. Refund of exonerated taxes and accounting revisions will occur only after receipt of such documents.
d)     The Customer is responsible for paying any increase in the cost of rights, taxes, levies and stamps occurring after placement of the Order, even if said change purports to discharge in whole or in part the Buyer of any more generally and notwithstanding anything to the contrary, the Order Price and/or the schedule of delivery included in the Order shall be adjusted as a result of an increase or decrease in costs or / and of extension or reduction of the time schedule due to the execution of any new law or regulation or of any change in existing laws and regulations which occur after the bid due date or change in the interpretation of any applicable law or regulation of any governmental or other authority having jurisdiction more generally and notwithstanding anything to the contrary, the Order Price and/or the schedule of delivery included in the Order may be adjusted as a result of an increase or decrease in costs or / and of extension or reduction of the time schedule due to the execution of any new law or regulation or of any change in existing laws and regulations which occur after the payment due date or change in the interpretation of any applicable law or regulation of any governmental or other authority having jurisdiction.
e)      Prices are subject to adjustment by the Neema Hardware so as to take into account unforeseeable variations, for instance in the costs of materials, energy and labor occurring between the date of the last Order and the invoice date. The Customer will be deemed to recognize and acknowledges this fact, and that such price adjustments are valid without a prior agreement. Nevertheless and in so far as possible, the Neema Hardware will, within a reasonable time, inform the Customer of its intent to make such adjustments before they become effective, giving the Customer all reasonable information in its possession concerning the need for, and methods used, in computing them.
f)       Nevertheless, in the event of supervening events, unforeseeable or unforeseen by the Parties on the day of the last Order, which upset the economic bases of the Contract to  Neema Hardware’s prejudice, the most diligent Party will without delay make a formal request for revision of Order(s) affected by said events and of such a nature that the Parties will in good faith agree as soon as possible to adjust the price or the schedule of delivery or, if necessary, the elements in the formula for indexing the price, in order to put the Parties in a position of equilibrium similar to that existing when they entered into their Agreement. If the Parties are unable to reach a friendly agreement within thirty (30) calendar days following a request to adapt the price or economic terms of the Contract, each Party will have the right to terminate the Contract, by a written notice, registered letter or by email giving seven (7) days notice of said termination, without compensation to either Party other than sums due to the Neema Hardware for the part of the Agreement performed so far. Any payment already received by Neema Hardware before any such terminated Order, such as an installment, remains the Neema Hardware’s property and may under no circumstance be restituted to the Customer or viewed as compensation by the Customer.
7.      Payment
a)      The time and mode of payment shall be as agreed upon in the Agreement.
b)      Notwithstanding and without any prejudice to section 9 (a), invoices are payable net, no later than thirty (30) days of the invoice issuance date. When a different term is agreed upon, the basis for calculation is always the invoice date. All due dates to be understood as the date at which the Neema Hardware’s account has been duly credited in value with the whole of the invoice amount. The discount rate for prepayment will be as agreed upon in the Agreement but shall in no case exceed 0.08 % per month.
c)      The Neema Hardware reserves the possibility of assigning its receivables to a collection or factoring agency.
d)     Within the framework of financing its activity, Neema Hardware reserves the option of assigning commercial receivables to an ad hoc institution (e.g. bank, financial institution…) without any modification of current dealings or any change concerning the management or the achievement of the Customer’s Orders. The settling of aforementioned receivables is made whether through Neema Hardware or directly through the ad hoc institution to the extent the Customer will be regularly notified by Neema Hardware or the ad hoc institution.
e)      Neema Hardware reserves the right to demand payment by check upon delivery of the Products if the Customer’s account is in arrears or if the Customer presents a risk of insolvency.
f)       Non-payment of a fraction of the price when due, or non-observance of any payment’s due date, shall trigger the Neema Hardware’s right to demand immediate payment of all sums then still due, (bills of exchange included),and to retain installments held by Neema Hardware  as well as tools and other items in the Neema Hardware’s custody received in the course of business dealings, until full payment of all sums due.
g)      As compensation for the prejudice suffered as a result of said late payment(s), the Customer will pay Neema Hardware without delay a sum equal to the annual rate of interest of 15% applied to the entire outstanding unpaid balance, such sum to be due upon the day following the invoice date of the late payment in question, without necessity of a reminder. In addition to this sum, the Customer will reimburse Neema hardware of the corresponding collective expenses.
h)      Notwithstanding resort to the sanction provided for in section 9 (g) above, non-payment of an invoice when due, whether partial or in full and for whatever reason, entitles Neema Hardware to cease delivering Goods, without notice or other formality. Such a decision, a matter of entitlement attributable to the Customer, entails the right retroactively to cancel existing contracts, without affecting the Neema Hardware’s right to compensation, or possible damages together with interest.
8.      Reservation of title
a)      The transfer of title to delivered Goods shall occur only after Neema Hardware receives full payment of the price and auxiliary charges. This reservation of title does not prevent transfer to the Customer, upon the Goods’ delivery, of all risks of loss and deterioration, as well as of damage they might occasion.
b)      If the Customer fails to make a payment when due, Neema Hardware may reclaim specific Goods, or all Goods of the same kind and quality held by the Customer. In case Neema Hardware repossesses said Goods, the Customer will be credited with their price after deducting, on one hand, the costs of repossession and, on the other, their possible loss of value between the Agreement and repossession dates.
c)      Before acquiring title to the Goods, the Buyer may neither grant any security interest therein to a third party, nor transform or resell them, without the Neema Hardware’s prior written consent. The Buyer will hold the goods as a bailee for Neema Hardware and if the said Goods are transformed to a different form, the Buyer will be deemed to hold the resulting product as bailee for Neema Hardware unless and until full payment of the original Goods is made.
d)     The Buyer shall assist Neema Hardware in any action the latter may be required to take in order to protect its rights of ownership. The Buyer commits itself to ensuring the Products as of their delivery, with Neema Hardware as beneficiary, against all risks that they might encounter or cause. The Buyer commits itself, under all circumstances, to maintaining delivered Goods in such a manner as to avoid any confusion about their ownership by the Neema Hardware.
9.      Guarantee and civil liability
a)      Neema Hardware’s responsibility is limited to delivering Goods in conformity with the plans and technical manual agreed to by the Parties and transferring ownership of goods to Buyer upon full payment of the purchase price.
b)      Neema Hardware’s responsibility shall in no case extend either to design or definition of components of the Goods, as the Buyer shall, in any event, bear the entire responsibility for the industrial result of the Goods, including responsibility for errors or omissions in technical specifications, criteria or standards. Unless expressly agreed otherwise in writing, all responsibility for choice of Products is incumbent upon the Buyer.
c)      Goods are sold “as is,” and Neema Hardware shall not be bound by any warranties of quality, whether express or implied, including the warranties of merchantability and fitness for particular purpose. Neema Hardware will afford the Buyer an opportunity for full and complete investigations, examinations, and inspections of Goods. The Buyer will be expected to rely solely on the investigations, examinations, and inspections as the Buyer shall have chosen to make. In any Agreement for the sale of Goods, the buyer will not rely on the allegations that he was induced by any statements or representations of any person with respect to the quality or condition of the Goods, or that any such statements or representations were made by Neema Hardware, its employees or agents.
d)     In the event a Good is found defective, the Vendor shall be responsible only for repair or replacement of that specific Good, pure and simple, by implementing logistical means as to which it shall be the sole judge, without any other form of recourse or compensation against Neema Hardware. Excluded from all guarantees are defects or damages resulting from storage or use of Products by the Buyer or its customers under conditions either anomalous or not in conformity with accepted norms. Any repair of a Product, including one found defective, done without Neema Hardware’s prior consent, shall result in loss of all guarantees, as well as of any right of recourse against Neema Hardware. The guarantees defined above cover only repair or replacement of delivered Products found defective by Neema Hardware after return of said Goods by the Buyer, and all charges for transport, packing, assembly, disassembly or other ancillary costs remain the Buyer’s burden. Neema Hardware will not accept return of any Product without its prior written authorization.
e)      Neema Hardware will not be liable for any indirect, special, consequential, or punitive damages (including lost profits) arising out of or relating the Agreement or the transactions contemplated by this Terms and Conditions (whether for breach of contract, tort, negligence, or other form of action) and irrespective of whether Neema Hardware has been advised of the possibility of any such damage. In no event will Neema Hardware’s liability exceed the price the Buyer paid to Neema Hardware for the specific Goods provided by the later giving rise to the claim or cause of action.
10.  Force majeure
a)      Neither party shall be liable for breach of the Agreement other than payment if and to the extent that fulfilment of a term or condition hereof has been prevented, hindered or delayed by force majeure as defined in this Condition and in such event the time for fulfilment of such a term shall be extended for such period as is reasonable in all the circumstances. The non-performing party must make every reasonable attempt to minimize delay of performance. In the event force majeure continues longer than 90 days, each party may terminate the agreement.
b)      The expression “force majeure” shall mean any event of circumstances beyond the immediate control of either party, including without prejudice to the generality of the foregoing, strikes, lock-outs, trade disputes, accident to plant or machinery, shortage of any material, failure in whole or in part of any power or Apollo supply, delays in or cancellations of deliveries or provision of services by third parties, riots, civil commotion, war national or international, emergency, destruction or damage due to natural forces, fire, flood, explosion, and compliance with others or requests of any national or local authority.
11.  Assignment
a)      Customer shall not assign or otherwise transfer all or any of its rights, interests or obligations under the Agreement without the prior written consent of Neema Hardware. Any or all of Neema Hardware’s rights or obligations under this Agreement or other contract may be assigned by Neema hardware and Customer shall not assert against an assignee any defence (other than actual payment), set-off or counterclaim which the Customer may have against Neema Hardware.
12.  Cancellation – termination
a)      A simple delay in delivery, nonobservance of a procedure, or any cause beyond Neema Hardware’s reasonable control, such as one attributable to a third party, which makes it impossible for Neema Hardware to fulfill its contractual obligations, shall be deemed to justify neither a request for any sort of compensation, nor the cancellation or termination of all or part of an Order by the Buyer.
b)      Neema Hardware shall have the right to terminate the Contract if the Buyer is in bankruptcy or liquidation proceedings, or in the event a significant change occurs in the Buyer’s legal circumstances undermining its solvency. However, termination of a Contract shall not reduce the Buyer’s debts to Neema Hardware.
c)      If the Buyer, for its own reasons, unilaterally cancels or terminates all or part of an Order, it shall immediately pay to Neema Hardware financial compensation in an amount which depends upon the date of such cancellation or termination relative to the delivery date specified in the Order said. Compensation is intended to cover damages or losses related to performance of the contract, the consequent loss of commercial opportunities, and administrative costs.
13.  Interpretation and law
a)      Headings are included in these Conditions for convenience and identification only, and are not to be taken to limit the meaning of any part of these Conditions.
b)      If any provision or part of a provision of the Agreement should be held unenforceable or in conflict with the laws of Kenya, any part so held unenforceable or invalid shall be severed from the remainder of the Agreement which shall not be affected by such severance.
c)      The Agreement represents the complete agreement between Neema Hardware and Customer with regard to the Goods and contains all agreements, warranties, conditions, representations and other terms agreed, made or relied upon by either party in connection with the Goods. The rights of Neema Hardware shall not be prejudiced or restricted by any indulgence or forbearance extended to Customer and no waiver of any breach shall operate as a waiver of any subsequent breach.
d)     These Conditions and every contract connected therewith shall be governed exclusively by the Constitution of Kenya, legislative Statutes and International Commercial Laws in so far as they have been adopted and are applicable in Kenya, and any claim or dispute arising there from shall be submitted to the Kenyan courts.
e)      Any reference in these Conditions to any statute or statutory provision shall be construed as including a reference to that statute or statutory provision as from time to time amended, modified, extended or re-enacted whether before or after the date of the Agreement and to all statutory instruments, orders and regulations for the time being made pursuant to it or deriving validity from it.
f)       In case of any arising disputes between Neema Hardware and any other party in the course of a contract for sale of goods, the dispute shall be resolved through mediation or arbitration; unless it fails to serve the needs of the parties. In no instance may a party seek to resolve a dispute arising in the course of business dealings through a court process if an Alternative Dispute Resolution mechanism hasn’t been applied first.

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