Draft of contract agreement - SFCI

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2. That the supplier will be liable to entertain al the complaints regarding defects sand failures and will be liable to remove the defects or replace the parts free of charges or to repair the defective parts to the extent that such replacement or repairs are attributable to/or arise from faulty workmanship or material or design in the manufacturing of the equipment, provided defects are brought to the notice of supplier during the warranty period. The liability will be restricted upto one month from the date of expiry of warranty period. In the event of any failure on the part of the supplier to fulfill the liability, the Corporation will be entitled to realize the cost of expenditure together with the damages or loss, if any. 3. The supplier shall, if required replace or repair the goods or such portion thereof as is rejected by the Corporation free of cost at the ultimate destination. The supplier shall pay to the Corporation value thereof at the contract price and all other expenditure damages and losses, if any, as may arise by reasons of the improper functioning of the equipments and breach of the conditions herein specified. The supplier shall give a bank guarantee to the extent of l0% of the total value of the equipments as per format given in section VI. 4. All replacements and repairs that the Corporation shall call upon the supplier to deliver or perform under the warranty shall be delivered and performed by the supplier promptly and satisfactorily failing which the Corporation shall be at liberty to enforce the Bank guarantee for due performance of the equipment and recover the damages and losses as per clause 3 above. 5. If the supplier so desired, the replaced parts can be taken over by him for disposal as he deems fit within the period of one month from the date of replacement. 6. The equipment shall carry l5 months warranty commencing from the date of receipt of equipment at the site or l2 months from the date of commissioning of equipment whichever is earlier. The warranty period for replaced parts will extent only to l2 month from the date of its replacement but for fast moving parts the guarantee shall be extended to the remaining period of equipment warrantee. x. LIQUIDITY DAMAGES: 1. If the supplier fails to deliver any or all the material covered by the contract, the Corporation reserve the right in addition to the legal remedies to cancel the contract as a whole or any portion thereof and hold the supplier liable for all the damages, sustained by virtue of said cancellation and failing to perform the contract.
2. In the event of Corporation exercising its right to cancel the contract or any portion thereof as stated in the proceeding clause, the Corporation shall be entitled to obtain the remaining equipment of the same specifications as offered by the supplier or on any other specifications that may be available or have the same fabricated by its own agency. In such an event, the Corporation shall be entitled to recover from the supplier the amount which the Corporation may have to incur over the above price which was payable to the supplier. 3. It is emphasized by Corporation and understood by the supplier that the period of delivery stipulated in the contract is the essence of the contract. It is admitted by the supplier that any delay in the delivery will cause damages to the Corporation. In the event of the supplier’s failure to have the store delivered by the due date specified in the acceptance of tender, the purchaser may with-hold any payment until the whole of the stores have been fully supplied and delivered at the ultimate destination and may deduct or recover from the suppler as liquidated damages (and not by way of penalty) of sum at the rate of 5% (five percent) of the price of any stores which the supplier has failed to deliver as aforesaid for each and every month (part of a month being treated as a full month) during which the stores may not be delivered, provided however, that if the delay shall have arisen from any cause which the Corporation may in his discretion allow such additional time as it may consider to have been required by the circumstances of the case. xi. PAYMENT: 1. All invoices shall be prepared in quadruplicate in favour of the consignee as per addresses given in this agreement. The invoice should bear a certificate that material covered by the invoice has been inspected by the supplier before delivery and found to confirm in every way to the contract specifications and is packed properly and further the invoice is correct in every particulars and no other invoice has been prepared previously in respect of the articles listed in the particular invoice. 2. Payment shall be made to supplier in the following manner:- 90% payment shall be made after commissioning of machine at site/destination and found in satisfactory working condition during trial and testing. Following documents shall be submitted to the Corporation for making 90% payment. a. Invoice (Original) - Two copies b. List of items Two copies
Page 1 and 2: S E C T I O N -V Agreement between
Page 3: vi) REMOVAL OF DEFECTS That if, upo
Page 7: 3. The parties also do hereby agree

Draft of contract agreement - SFCI

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