Force Majeure

Date: 2015-10-07; view: 481.

Sanctions

Insurance

The Buyer will insure at his expense all the equipment for its full value against all usual marine risks from the moment the goods are put on board at the port of loading.

6.1. In the event of the Seller's delay in the supply against the dates stipulated in the Contract the Seller is to pay to the Buyer penalty at the rate of 0,5 % of the value of goods not delivered in due time for every week of the delay within the first four weeks and 1% for every subsequent week but not more than 10% of the value of the equipment not delivered in due time.

6.2. The penalties will be deducted from the Seller's invoices when they will be paid by the Buyer. In case the Buyer for any reason does not deduct the penalty when paying the Seller's invoice the latter is obliged to pay the penalty at the first request of the Buyer.

6.3. Should the delay in delivery exceed four months the Buyer shall have the right to cancel the Contract or a part thereof.

6.4. Should the shipment of the equipment not be notified or be notified with delay, the Seller is to pay to the Buyer penalty at the rate of 0,1% of the value of the equipment already shipped.

Example 4.

7.1. Seller shall not be liable for any loss or damage to Buyer by reason of delay in performance, or non-performance of any obligations under this Agreement, resulting from force majeure circumstances such as war, riot, fire, explosion, flood, strike, labor interruption or disturbance, lockout, injunction, government action, inability to obtain fuel, electrical power, raw materials, material in intermediate or finished form, labor, containers, or transportation facilities, accident, breakage of machinery or apparatus, national emergency, natural disasters, blockades, prohibition of export / import activities or any other causes beyond the control of Seller preventing the manufacture or delivery of the Products. In such circumstances, deadlines to be met by either party are deferred as long as such circumstances last. Seller reserves the right during the period of shortage due to any of said causes to allocate its available supplies among any or all purchases, as well as departments and divisions of Seller on such basis as it may equitable, without liability for any failure of performance or delay in performance which may result therefrom.

7.2. The Party which is unable to fulfil the obligation due to force majeure circumstances shall immediately inform in writing the other Party about such force majeure circumstances and about its termination.

Example 5.