GENERAL CONDITIONS

for the
SUPPLY OF MECHANICAL, ELECTRICAL AND ELECTRONIC PRODUCTS
Brussels, March 2012
PREAMBLE
1. These General Conditions shall apply when the parties
agree In Writing or otherwise thereto. Any modifcations of or
deviationsfromthemmustbeagreedInWriting.
DEFINITIONS
2. IntheseGeneralConditionsthefollowingtermsshallhave
themeaningshereunderassignedtothem:
- Contract: the agreement In Writing between the
parties concerning supply of the Product and all appendices,
includingagreedamendmentsandadditionsInWritingtothesaid
documents;
- Gross Negligence:anactoromissionimplyingeither
a failure to pay due regard to serious consequences, which a
conscientiouscontractingpartywouldnormallyforeseeaslikely
toensue,oradeliberatedisregardoftheconsequencesofsuch
anactoromission;
- In Writing: communication by document signed by
both parties or by letter, fax, electronic mail and by such other
meansasareagreedbytheparties;
- the Product: the object(s) to be supplied under the
Contract,includingsoftwareanddocumentation.
PRODUCT INFORMATION
3. All information and data contained in general product
documentationandpricelistsshallbebindingonlytotheextent
that they are by reference In Writing expressly included in the
Contract.
DRAWINGS AND TECHNICAL INFORMATION
4. All drawings and technical documents relating to the
Product or its manufacture submitted by one party to the other,
priororsubsequenttotheformationoftheContract,shallremain
thepropertyofthesubmittingparty.
Drawings, technical documents or other technical
informationreceivedbyonepartyshallnot,withouttheconsent
of the other party, be used for any other purpose than that for
whichtheywereprovided.Theymaynot,withouttheconsentof
the submitting party, otherwise be used or copied, reproduced,
transmittedorcommunicatedtoathirdparty.
5. The Supplier shall, not later than at the date of delivery,
provide free of charge information and drawings which are
necessarytopermitthePurchasertoinstall,commission,operate
and maintain the Product. Such information and drawings shall
be supplied in the number of copies agreed upon or at least
one copy of each. The Supplier shall not be obliged to provide
manufacturingdrawingsfortheProductorforspareparts.
ACCEPTANCE TESTS
6. AcceptancetestsprovidedforintheContractshall,unless
otherwise agreed, be carried out at the place of manufacture
duringnormalworkinghours.
IftheContractdoesnotspecifythetechnicalrequirements,
thetestsshallbecarriedoutinaccordancewithgeneralpractice
intheappropriatebranchofindustryconcernedinthecountryof
manufacture.
7. The Supplier shall notify the Purchaser In Writing of the
acceptancetestsinsuffcienttimetopermitthePurchasertobe
representedatthetests.IfthePurchaserisnotrepresented,the
testreportshallbesenttothePurchaserandshallbeaccepted
asaccurate.
8. If the acceptance tests show the Product not to be in
accordance with the Contract, the Supplier shall without delay
remedy any defciencies in order to ensure that the Product
complieswiththeContract.Newtestsshallthenbecarriedoutat
thePurchasersrequest,unlessthedefciencywasinsignifcant.
9. TheSuppliershallbearallcostsforacceptancetestscarried
out at the place of manufacture. The Purchaser shall however
bear all travelling and living expenses for his representatives in
connectionwithsuchtests.
DELIVERY. PASSING OF RISK
10. Any agreed trade term shall be construed in accordance
withtheINCOTERMSinforceattheformationoftheContract.
Ifnotradetermhasbeenspecifcallyagreed,thedelivery
shallbeFreeCarrier(FCA)attheplacenamedbytheSupplier.
If,inthecaseofdeliveryFreeCarrier,theSupplier,atthe
request of the Purchaser, undertakes to send the Product to its
destination,theriskwillpassnotlaterthanwhentheProductis
handedovertothefrstcarrier.
Partial delivery shall not be permitted, unless otherwise
agreed.
TIME FOR DELIVERY. DELAY
11. If the parties, instead of specifying the date for delivery,
have specifed a period of time within which delivery shall take
place, such period shall start to run as soon as the Contract
is entered into and all agreed preconditions to be fulflled by
the Purchaser have been satisfed, such as offcial formalities,
paymentsdueattheformationoftheContractandsecurities.
12. IftheSupplieranticipatesthathewillnotbeabletodeliver
the Product at the time for delivery, he shall forthwith notify the
ORGALIME S 2012

PurchaserthereofInWriting,statingthereasonand,ifpossible,
thetimewhendeliverycanbeexpected.
IftheSupplierfailstogivesuchnotice,thePurchasershall
be entitled to compensation for any additional costs which he
incurs and which he could have avoided had he received such
notice.
13. Ifdelayindeliveryiscausedbyanyofthecircumstances
mentionedinClause41,byanactoromissiononthepartofthe
Purchaser,includingsuspensionunderClauses21and44,orany
other circumstances attributable to the Purchaser, the Supplier
shallbeentitledtoextendthetimefordeliverybyaperiodwhich
isnecessaryhavingregardtoallthecircumstancesofthecase.
Thisprovisionshallapplyregardlessofwhetherthereasonforthe
delayoccursbeforeoraftertheagreedtimefordelivery.
14. IftheProductisnotdeliveredatthetimefordelivery,the
Purchasershallbeentitledtoliquidateddamagesfromthedate
onwhichdeliveryshouldhavetakenplace.
The liquidated damages shall be payable at a rate of 0.5
per cent of the purchase price for each commenced week of
delay. The liquidated damages shall not exceed 7.5 per cent of
thepurchaseprice.
If only part of the Product is delayed, the liquidated
damages shall be calculated on that part of the purchase price
which is attributable to such part of the Product as cannot in
consequenceofthedelaybeusedasintendedbytheparties.
The liquidated damages shall become due at the
PurchasersdemandInWritingbutnotbeforedeliveryhasbeen
completedortheContractisterminatedunderClause15.
ThePurchasershallforfeithisrighttoliquidateddamages
ifhehasnotlodgedaclaimInWritingforsuchdamageswithinsix
monthsafterthetimewhendeliveryshouldhavetakenplace.
15. If the delay in delivery is such that the Purchaser is
entitled to maximum liquidated damages under Clause 14 and
iftheProductisstillnotdelivered,thePurchasermayInWriting
demanddeliverywithinafnalreasonableperiodwhichshallnot
belessthanoneweek.
If the Supplier does not deliver within such fnal period
and this is not due to any circumstances which are attributable
to the Purchaser, then the Purchaser may by notice In Writing
totheSupplierterminatetheContractinrespectofsuchpartof
theProductascannotinconsequenceoftheSuppliersfailureto
deliverbeusedasintendedbytheparties.
If the Purchaser terminates the Contract he shall be
entitledtocompensationforthelosshesuffersasaresultofthe
Suppliers delay, including any consequential and indirect loss.
Thetotalcompensation,includingtheliquidateddamageswhich
arepayableunderClause14,shallnotexceed15percentofthat
partofthepurchasepricewhichisattributabletothepartofthe
ProductinrespectofwhichtheContractisterminated.
The Purchaser shall also have the right to terminate the
Contract by notice In Writing to the Supplier, if it is clear from
thecircumstancesthattherewilloccuradelayindeliverywhich,
under Clause 14, would entitle the Purchaser to maximum
liquidated damages. In case of termination for this reason, the
Purchasershallbeentitledtomaximumliquidateddamagesand
compensationunderthethirdparagraphofthisClause15.
16. Liquidated damages under Clause 14 and termination of
the Contract with limited compensation under Clause 15 shall
betheonlyremediesavailabletothePurchaserincaseofdelay
onthepartoftheSupplier.AllotherclaimsagainsttheSupplier
basedonsuchdelayshallbeexcluded,exceptwheretheSupplier
hasbeenguiltyofGrossNegligence.
17. IfthePurchaseranticipatesthathewillbeunabletoaccept
deliveryoftheProductatthetimefordelivery,heshallforthwith
notify the Supplier In Writing thereof, stating the reason and, if
possible,thetimewhenhewillbeabletoacceptdelivery.
If the Purchaser fails to accept delivery at the time for
delivery,heshallneverthelesspayanypartofthepurchaseprice
which becomes due at the time for delivery, as if delivery had
takenplaceatthetimefordelivery.TheSuppliershallarrangefor
storageoftheProductattheriskandexpenseofthePurchaser.
The Supplier shall also, if the Purchaser so requires, insure the
ProductatthePurchasersexpense.
18. UnlessthePurchasersfailuretoacceptdeliveryisdueto
anysuchcircumstanceasmentionedinClause41,theSupplier
maybynoticeInWritingrequirethePurchasertoacceptdelivery
withinafnalreasonableperiod.
If,foranyreasonwhichisnotattributabletotheSupplier,
the Purchaser fails to accept delivery within such period, the
SuppliermaybynoticeInWritingterminatetheContractinwhole
orinpart.TheSuppliershallthenbeentitledtocompensationfor
thelosshesuffersbyreasonofthePurchasersdefault,including
anyconsequentialandindirectloss.Thecompensationshallnot
exceedthatpartofthepurchasepricewhichisattributabletothat
partoftheProductinrespectofwhichtheContractisterminated.
PAYMENT
19. Payment shall be made within 30 days after the date of
invoice.
Unless otherwise agreed, the purchase price shall be
paidwithonethirdattheformationoftheContractandonethird
whentheSuppliernotifesthePurchaserthattheProduct,orthe
essentialpartofit,isreadyfordelivery.Theremainingpartofthe
purchasepriceshallbepaidwhentheentireProductisdelivered.
20. Whateverthemeansofpaymentused,paymentshallnot
bedeemedtohavebeeneffectedbeforetheSuppliersaccount
hasbeenirrevocablycreditedfortheamountdue.
21. If the Purchaser fails to pay by the stipulated date, the
Supplier shall be entitled to interest from the day on which
payment was due and to compensation for recovery costs. The
rateofinterestshallbeasagreedbetweenthepartiesorotherwise
8percentagepointsabovetherateofthemainrefnancingfacility
of the European Central Bank. The compensation for recovery
costsshallbe1percentoftheamountforwhichinterestforlate
paymentbecomesdue.
In case of late payment and in case the Purchaser fails
to give an agreed security by the stipulated date the Supplier
may, after having notifed the Purchaser In Writing, suspend his
performanceoftheContractuntilhereceivespaymentor,where
appropriate,untilthePurchasergivestheagreedsecurity.
IfthePurchaserhasnotpaidtheamountduewithinthree
monthstheSuppliershallbeentitledtoterminatetheContractby
noticeInWritingtothePurchaserand,inadditiontotheinterest
andcompensationforrecoverycostsaccordingtothisClause,to
claim compensation for the loss he incurs. Such compensation
shallnotexceedtheagreedpurchaseprice.
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RETENTION OF TITLE
22. TheProductshallremainthepropertyoftheSupplieruntil
paid for in full to the extent that such retention of title is valid
undertherelevantlaw.
The Purchaser shall at the request of the Supplier assist
him in taking any measures necessary to protect the Suppliers
titletotheProduct.
The retention of title shall not affect the passing of risk
underClause10.
LIABILITY FOR DEFECTS
23. PursuanttotheprovisionsofClauses24-39,theSupplier
shall remedy any defect or nonconformity (hereinafter termed
defect(s))resultingfromfaultydesign,materialsorworkmanship.
24. The Supplier shall not be liable for defects arising out
of materials provided or a design stipulated or specifed by the
Purchaser.
25. TheSuppliershallonlybeliablefordefectswhichappear
undertheconditionsofoperationprovidedforintheContractand
underproperuseoftheProduct.
26. The Supplier shall not be liable for defects caused by
circumstances, which arise after the risk has passed to the
Purchaser, e.g. defects due to faulty maintenance, incorrect
installationorfaultyrepairbythePurchaserortoalterationscarried
out without the Suppliers consent In Writing. The Supplier shall
neitherbeliablefornormalwearandtearnorfordeterioration.
27. The Suppliers liability shall be limited to defects which
appear within a period of one year from delivery. If the use of
the Product exceeds that which is agreed, this period shall be
reducedproportionately.
28. WhenadefectinapartoftheProducthasbeenremedied,
theSuppliershallbeliablefordefectsintherepairedorreplaced
partunderthesametermsandconditionsasthoseapplicableto
the original Product for a period of one year. For the remaining
partsoftheProducttheperiodmentionedinClause27shallbe
extendedonlybyaperiodequaltotheperiodduringwhichand
totheextentthattheProductcouldnotbeusedasaresultofthe
defect.
29. ThePurchasershallwithoutunduedelaynotifytheSupplier
In Writing of any defect which appears. Such notice shall under
nocircumstancesbegivenlaterthantwoweeksaftertheexpiry
oftheperiodgiveninClause27ortheextendedperiod(s)under
Clause28,whereapplicable.
Thenoticeshallcontainadescriptionofthedefect.
IfthePurchaserfailstonotifytheSupplierInWritingofa
defectwithinthetimelimitssetforthinthefrstparagraphofthis
Clause,heshalllosehisrighttohavethedefectremedied.
Where the defect is such that it may cause damage, the
Purchaser shall immediately inform the Supplier In Writing. The
PurchasershallbeartheriskofdamagetotheProductresulting
fromhisfailuresotonotify.ThePurchasershalltakereasonable
measures to minimise damage and shall in that respect comply
withinstructionsoftheSupplier.
30. On receipt of the notice under Clause 29 the Supplier
shallathisowncostremedythedefectwithoutunduedelay,as
stipulatedinClauses23-39.Thetimeforremedialworkshallbe
choseninordernottointerfereunnecessarilywiththePurchasers
activities.
RepairshallbecarriedoutattheplacewheretheProduct
islocatedunlesstheSupplierdeemsitmoreappropriatethatthe
Productissenttohimoradestinationspecifedbyhim.
Ifthedefectcanberemediedbyreplacementorrepairof
adefectivepartandifdismantlingandre-installationofthepart
donotrequirespecialknowledge,theSuppliermaydemandthat
thedefectivepartissenttohimoradestinationspecifedbyhim.
In such case the Supplier shall have fulflled his obligations in
respect of the defect when he delivers a duly repaired part or a
partinreplacementtothePurchaser.
31. ThePurchasershallathisownexpenseprovideaccessto
theProductandarrangeforanyinterventioninequipmentother
than the Product, to the extent that this is necessary to remedy
thedefect.
32. Unless otherwise agreed, necessary transport of the
Product or parts thereof to and from the Supplier in connection
withtheremedyingofdefectsforwhichtheSupplierisliableshall
be at the risk and expense of the Supplier. The Purchaser shall
followtheSuppliersinstructionsregardingsuchtransport.
33. Unless otherwise agreed, the Purchaser shall bear any
additional costs which the Supplier incurs for remedying the
defectcausedbytheProductbeinglocatedinaplaceotherthan
the destination stated at the formation of the Contract for the
SuppliersdeliverytothePurchaserorifnodestinationhasbeen
statedtheplaceofdelivery.
34. Defective parts which have been replaced shall be made
availabletotheSupplierandshallbehisproperty.
35. If the Purchaser has given such notice as mentioned in
Clause29andnodefectisfoundforwhichtheSupplierisliable,
the Supplier shall be entitled to compensation for the costs he
incursasaresultofthenotice.
36. IftheSupplierdoesnotfulflhisobligationsunderClause
30,thePurchasermaybynoticeInWritingfxafnalreasonable
periodforcompletionoftheSuppliersobligations,whichshallnot
belessthanoneweek.
IftheSupplierfailstofulflhisobligationswithinsuchfnal
period, the Purchaser may himself undertake or employ a third
partytoundertakenecessaryrepairworkattheriskandexpense
oftheSupplier.
Where successful repair work has been undertaken by
the Purchaser or a third party, reimbursement by the Supplier
of reasonable costs incurred by the Purchaser shall be in full
settlementoftheSuppliersliabilitiesforthesaiddefect.
37. WheretheProducthasnotbeensuccessfullyrepaired,as
stipulatedunderClause36,
a) the Purchaser shall be entitled to a reduction of the
purchasepriceinproportiontothereducedvalueoftheProduct,
provided that under no circumstances shall such reduction
exceed15percentofthepurchaseprice,or
b) where the defect is so substantial as to signifcantly
deprivethePurchaserofthebeneftoftheContractasregardsthe
Product or a substantial part of it, the Purchaser may terminate
3

the Contract by notice In Writing to the Supplier in respect of
suchpartoftheProductascannotinconsequenceofthedefect
beusedasintendedbytheparties.ThePurchasershallthenbe
entitledtocompensationforhisloss,costsanddamagesuptoa
maximumof15percentofthatpartofthepurchasepricewhich
is attributable to the part of the Product in respect of which the
Contractisterminated.
38. Notwithstanding the provisions of Clauses 23-37 the
SuppliershallnotbeliablefordefectsinanypartoftheProduct
formorethanoneyearfromtheendoftheliabilityperiodreferred
toinClause27orfromtheendofanyotherliabilityperiodagreed
uponbytheparties.
39. SaveasstipulatedinClauses23-38,theSuppliershallnot
beliablefordefects.Thisappliestoanylossthedefectmaycause
includinglossofproduction,lossofproftandotherindirectloss.
This limitation of the Suppliers liability shall not apply if he has
beenguiltyofGrossNegligence.
ALLOCATION OF LIABILITY FOR DAMAGE CAUSED BY THE
PRODUCT
40. TheSuppliershallnotbeliableforanydamagetoproperty
causedbytheProductafterithasbeendeliveredandwhilstitis
inthepossessionofthePurchaser.NorshalltheSupplierbeliable
foranydamagetoproductsmanufacturedbythePurchaserorto
productsofwhichthePurchasersproductsformapart.
If the Supplier incurs liability towards any third party
for such damage to property as described in the preceding
paragraph, the Purchaser shall indemnify, defend and hold the
Supplierharmless.
IfaclaimfordamageasdescribedinthisClauseislodged
by a third party against one of the parties, the latter party shall
forthwithinformtheotherpartythereofInWriting.
TheSupplierandthePurchasershallbemutuallyobliged
to let themselves be summoned to the court or arbitral tribunal
examiningclaimsfordamageslodgedagainstoneofthemonthe
basis of damage allegedly caused by the Product. The liability
betweentheSupplierandthePurchasershallhoweverbesettled
inaccordancewithClause46.
ThelimitationoftheSuppliersliabilityinthefrstparagraph
ofthisClauseshallnotapplywheretheSupplierhasbeenguiltyof
GrossNegligence.
FORCE MAJEURE
41. Eitherpartyshallbeentitledtosuspendperformanceofhis
obligationsundertheContracttotheextentthatsuchperformance
is impeded or made unreasonably onerous by Force Majeure,
meaning any of the following circumstances: industrial disputes
and any other circumstance beyond the control of the parties
such as fre, war, extensive military mobilization, insurrection,
requisition, seizure, embargo, restrictions in the use of power,
currency and export restrictions, epidemics, natural disasters,
extreme natural events, terrorist acts and defects or delays in
deliveriesbysub-contractorscausedbyanysuchcircumstance
referredtointhisClause.
AcircumstancereferredtointhisClausewhetheroccurring
priortooraftertheformationoftheContractshallgivearightto
suspension only if its effect on the performance of the Contract
couldnotbeforeseenatthetimeoftheformationoftheContract.
42. The party claiming to be affected by Force Majeure shall
notifytheotherpartyInWritingwithoutdelayontheintervention
andonthecessationofsuchcircumstance.Ifapartyfailstogive
suchnotice,theotherpartyshallbeentitledtocompensationfor
any additional costs which he incurs and which he could have
avoidedhadhereceivedsuchnotice.
If Force Majeure prevents the Purchaser from fulflling
his obligations, he shall compensate the Supplier for expenses
incurredinsecuringandprotectingtheProduct.
43. Regardless of what might otherwise follow from these
GeneralConditions,eitherpartyshallbeentitledtoterminatethe
Contract by notice In Writing to the other party if performance
oftheContractissuspendedunderClause41formorethansix
months.
ANTICIPATED NON-PERFORMANCE
44. Notwithstanding other provisions in these General
Conditionsregardingsuspension,eachpartyshallbeentitledto
suspend the performance of his obligations under the Contract,
where it is clear from the circumstances that the other party is
not going to perform his obligations. A party suspending his
performanceoftheContractshallforthwithnotifytheotherparty
thereofInWriting.
CONSEQUENTIAL LOSSES
45. SaveasotherwisestatedintheseGeneralConditionsthere
shallbenoliabilityforeitherpartytowardstheotherpartyforloss
ofproduction,lossofproft,lossofuse,lossofcontractsorfor
anyotherconsequentialorindirectlosswhatsoever.

DISPUTES AND APPLICABLE LAW
46. AlldisputesarisingoutoforinconnectionwiththeContract
shall be fnally settled under the Rules of Arbitration of the
International Chamber of Commerce by one or more arbitrators
appointedinaccordancewiththesaidRules.
47. TheContractshallbegovernedbythesubstantivelawof
theSupplierscountry.
This is an Orgalime publication. Orgalime represents the mechanical, electrical, electronic and metalworking industries in Europe.
All rights reserved
Editeur responsable : Adrian Harris, Director General
ORGALIME The European Engineering Industries Association
Diamant Building, Boulevard A Reyers 80, B1030 Brussels
Tel: +32 2 706 82 35 Fax: +32 2 706 82 50 secretariat@orgalime.org www.orgalime.org

Appendix attached to the ORGALIME GENERAL CONDITIONS S 2012
regarding the application of German law
Where the Contract is governed by German Law (cf. clause 47 of the ORGALIME Conditions), the present Amendment shall apply
jointly with the ORGALIME Conditions in order to pay due regard to the provisions of the German Civil Code BGB concerning
standard business conditions.
Note: The Convention on Contracts for the International Sale of Goods - usually named as Vienna Convention of April 11th
1980 - might be applied to the Contract. If this is not the intention of the Parties, a stipulation to the contrary will have to be
expressly mentioned and agreed upon.
regarding clause 14, para 5:
is deleted
regarding clause 16 second sentence (to be replaced by the following) :
All other claims against the Supplier based on such delay shall be excluded, except where the Supplier has been guilty of a negligent breach of
a fundamental condition of the contract (wesentliche Vertragspfichten), intent or Gross Negligence according to Clause 2.
regarding clause 39 (to be replaced by the following):
Save as stipulated in Clauses 23-38, the Supplier shall not be liable for defects. This applies to any loss the defect may cause including loss
of production, loss of proft and other indirect loss. This limitation of the Suppliers liability shall not apply if he has been guilty of intent or Gross
Negligence as defned in Clause 2 or if the Supplier negligently causes damage to life, body or health.
Furthermore, the limitation of liability shall not apply in cases of negligent breach of a fundamental condition of the contract (wesentliche
Vertragspfichten). In the case of slight negligence the Supplier shall be liable only for reasonably foreseeable damage which is intrinsic to the
contract.
Nor shall the said limitation of liability apply in the cases of strict liability under the Product Liability Act (Produkthaftungsgesetz), for defects of
the Product causing death or personal injury, or damage to items of property used privately. Furthermore, the said limitation of liability shall not
apply in the case of defects the Supplier has fraudulently concealed or whose absence he has guaranteed.
regarding clause 40:
is deleted
regarding clause 45 (amendment):
The said exclusion of liability shall not apply in the case of intent or Gross Negligence under Clause 2 or if the Supplier negligently causes
damage to life, body or health. Furthermore, the exclusion of liability shall not apply in cases of negligent breach of a fundamental condition of
the contract (wesentliche Vertragspfichten). In the case of a slightly negligent breach of a fundamental condition of the contract, the Supplier
shall be liable only for reasonably foreseeable damage which is intrinsic to the contract.
Nor shall the exclusion of liability apply in cases of strict liability under the Product Liability Act (Produkthaftungsgesetz), for defects of the
Product causing death or personal injury, or damage to items of property used privately. Neither does the said exclusion apply in the case of
damage attributable to fraudulent concealment or under a specifc guarantee granted.
March 2012