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This document outlines the terms and conditions of a purchase order between Buyer and Seller, including acceptance, modification, pricing, warranties, inspection, and compliance with laws. It emphasizes the responsibilities of both parties, including Seller's obligation to provide quality goods and services, and Buyer’s rights to cancel orders and seek remedies for non-compliance. Additionally, it addresses issues like indemnity, insurance requirements, and handling of labor disputes.

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0% found this document useful (0 votes)
12 views2 pages

Suppliers

This document outlines the terms and conditions of a purchase order between Buyer and Seller, including acceptance, modification, pricing, warranties, inspection, and compliance with laws. It emphasizes the responsibilities of both parties, including Seller's obligation to provide quality goods and services, and Buyer’s rights to cancel orders and seek remedies for non-compliance. Additionally, it addresses issues like indemnity, insurance requirements, and handling of labor disputes.

Uploaded by

Jess Adm
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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PURCHASE ORDER TERMS AND CONDITONS

1. ACCEPTANCE OF PURCHASE ORDER: This purchase order constitutes Buyer’s offer to Seller upon the terms and conditions
stated herein and in to body of the order as shall become a binding contract upon acceptance thereof either by acknowledgement or
performance. Said offer is limited to said terms and condition and no deviation there from shall be acceptable.

2. MODIFICATION/CHANGES: This purchase order constitutes the entire agreement between Buyer and Seller superseding all prior
communications and/or agreements between the parties. All telephone orders must be confirmed by Buyer in writing. The purchase
order may only be modified in writing signed by both parties. Buyer may, by written notice, change specifications or other terms
contained on the obverse hereof or suspend work on items ordered. Upon receipt, Seller shall notify Buyer immediately of any
increase of decrease in the cost or time of performance. Buyer may cancel this order with or without cause at any time. Buyer will
not be liable for the purchase price or other costs or damages.

3. PRICES: (a) Net prices shall not exceed those appearing opposite each time hereon and is seller sells to any other comparable
customer at lower net prices than offered herein Seller agrees to immediately make such prices available to Buyer. (b) in the event
that this purchase order is a blanket order and is subject to release(s) during the period specified hereto agree that the price(s) shown
on this purchase order shall remain firm for all requirements (quantities) released pursuant to this purchase order for the duration of
this purchase order as specified hereon except that the parties may negotiate price changes or a lower price may be required to
subparagraph (a) above in which event an amendment hereto will be issued. (c) Shipments shall not be made at prices higher than
specified. (d) No box crating or transportation charges will be allowed. (e) Buyer shall not pay for goods exceeding the quantity
ordered.

4. WARRANTY: Seller expressly warrants that items covered by the purchase order will be merchantable fit and sufficient for the
purpose intended and will be of good material and workmanship and free from defects and if ordered to Buyers description will
conform to the design, specifications, drawings, blueprints, samples, or other technical description furnished or adopted by Buyer.
The warranty shall run to buyer its successors, assigns, dealers, agents, customers, and users of its products. Seller will save
indemnify and hold Buyer harmless against liability arising out of the violation of any U.S. or Foreign patent with respect to any
goods or services purchased by Buyer hereunder.

5. INSPECTION: (a) Seller Agrees all items shall be subject to inspection and test by Buyer at Seller’s plant and/or the point of
destination as Buyer may elect notwithstanding prior payment if any items are determined to be defective in material,
workmanship, or design (if item is Seller’s design and specification) or otherwise fail to meet the requirements of this purchase
order, Buyer shall have the right to reject and return such defective items to Seller at Sellers expense, Seller paying transportation
charges both ways unless Seller shall direct Buyer to scrap or rework such items at destination or Buyers plant. Seller shall
promptly correct or replace such returned and/or scrapped items at Sellers expense; items shall not be replaced except on receipt of
replacement purchase order from buyer. If Seller shall fail to perform Buyer may cancel the then remaining balance of this purchase
order. Buyer reserving in either or both cases of cancellation all other legal rights and remedies available to it because of such
failure to perform. (b) If this order is for machinery, tools, or equipment special or otherwise: (1) initial testing of such items will be
at Seller’s factory in the presence of Buyer’s engineers; Seller will then supervise, at its expense, the installation and initial
operation of such items at Buyer’s plant. Such items will be accepted only after all necessary corrective adjustments relating to
mechanical operations, capacity, or any other matter, have been made by seller at its expense and such items have been in
satisfactory production use for at least (30) days and Buyer will not be requested to make payment prior to such date. (11) Seller
specifically warrants that for a reasonable period of time after being placed into regular production use, such items will, when
operating under Buyers production conditions perform for purpose intended to be performed by such items in a manner consistent
with Buyers production and quality requirements. (111) Approval by Buyer of construction drawings and any other materials
relating to design or construction of such items is merely advisory on Buyer’s part and shall in no way relieve Seller or its
warranties.

6. DEFECTS AFTER ACCEPTANCE: If any of the items which have been inspected, tested, and accepted by Buyer fail to meet the
warranty contained in Paragraph 5. Seller, upon notice thereof from Buyer, shall promptly correct or replace the same at Seller’s
expense and reimburse Buyer for incidental or consequential damages suffered by Buyer as direct or indirect purchaser from Buyer.
If Seller shall fail to perform, Buyer may cancel this purchase order as to all such items, and in addition, may cancel the then
remaining balance of this purchase order, Buyer reserving in either or both cases of such cancellation all other legal rights and
remedies available to it because of such failure to perform. After notice to Seller all such items will be held at Sellers risk. Buyer
may return such items to Seller at Seller’s risk, and all transportation and related charges both to and from the original destination
shall be paid by Seller. Defective items returned to Seller and/or defective items scrapped by Buyer at Seller’s direction shall be
deducted from total shipments in determining the undelivered balance or any under the purchase order.

7. TITLE: Buyer shall at all times have title to all drawings and specifications furnished by Buyer to Seller and intended for use in
connection with this purchase order. Seller shall use such drawings and specifications only in connection with this order and shall
not disclose such drawings and specification to any person, firm or corporation other than Buyer’s or Seller’s employees, subcontractors
or Government inspectors. The Seller shall upon Buyer’s request or upon completion of the order promptly return all
drawings and specifications to the Buyer.

8. LATE DELIVERY: If Seller’s deliveries are so far behind a given schedule that Buyer finds it necessary to call upon Seller for
express shipments. Seller will allow Buyer the difference between freight and express rates and if Seller’s deliveries are so far
behind a given schedule that the Buyer is compelled to use materials not according to Buyer’s specification or at a higher cost, the
Seller will pay whatever additional costs, expenses, losses, or damages that Buyer sustains. The provisions of this paragraph
however are not intended to limit any other rights the Buyer may have against the Seller as a matter of law.

9. LABOR LAWS: In performance of the Seller’s work and the furnishing of materials under this order, Seller shall comply with all
applicable laws and regulations relating to employment. Including but not limited to the Fair Labor Standard Act and the
Occupational Safety and Health act of 1970. Where this purchase order covers materials and/or services to be used in the
fulfillment of a government contract, Seller shall comply with the Executive Order 11246, the Vocational Rehabilitation Act of
1973, the Vietnam Era Veterans Readjustment Act of1974, the National Women’s Business Enterprise Program established by
Executive Order 12138, the Labor Surplus Area Program mandated by P.L. 95-507, and all rules and regulations thereunder, unless
exempted from such compliance. Seller shall hold Buyer harmless from and reimburse it for any and all costs, damages and
expenses (including attorney’s fees) suffered by it directly or indirectly through the failure of the seller to comply with any such
laws, regulations or orders.

10. INDUSTRIAL LAWS: The seller agrees that neither the seller nor any of the person’s furnishing materials or performing work or
services which are required by this order are employees of Buyer within the meaning of or the application of any Federal or State
Unemployment Insurance Law or Old Age Benefit Law, or other Social Security Law, any Workman’s Compensation Industrial
Acts Law or other Industrial or Labor Law. The seller hereby agrees, at its own expense, to comply with such laws and to assume
all liabilities or obligations imposed by any one or more of such laws with respect to this agreement.

11. OTHER LAWS: Seller will comply with all Federal, State and Municipal laws, rules and regulations that may be applicable to this
order.

12. WAIVER: The failure of either party at any time to require performance by the other party of any provision hereof shall in no way
affect the full right to require such performance at any time thereafter, nor shall the waiver by either party of a breach of any
provision hereof constitute a waiver of any succeeding breach of the same or any other provision or as a waiver of the provision
itself. The remedies herein reserved shall be cumulative and in addition to any other remedies provided by law or equity. Time is of
the essence of the agreement

13. INTERPRETATION: This purchase order shall be considered as executed in and shall be construed in accordance with the laws of
State of Ohio. For purposes of this purchase order. Seller is a “Merchant” within the meaning of that under the Uniform Commercial
Code.
14. NECESSARY DATA AND EQUIPMENT: Seller warrants that it has all blueprints, specifications or other data required to enable
Seller to produce the items or perform the services specified herein. Seller warrants that it has or will procure without Buyer’s
assistance all facilities, machinery and equipment necessary for the performance of this purchase order.

15. ASSIGNMENT AND SUBCONTRACT: This purchase order, any payments due hereunder, or any portion of work to be
performed hereunder shall not be assigned or subcontracted to any other person without Buyer’s prior written consent. Buyer shall
promptly be furnished with two signed copies of any such assignment. Payment to an assignee of any such claim shall be subject to
set off or recoupment for any present or future claim or claims which Buyer may have against Seller, except to the extent that any
such claims may be expressly waived in writing by Buyer. Buyer reserves the right to make direct settlements and/or adjustments in
price(s) with Seller notwithstanding any assignment of claims for monies due or to become due hereunder and without notice to the
assignee.

16. INDEMNITY: Seller agrees to save hold harmless and indemnify Buyer against any and all claims, liability, losses, damage and
expense, for injuries, death or loss or damaged to property arising out of the performance by Seller of this purchase order. Seller
may, at Buyer’s option, be required to defend all such suits arising out of Seller’s failure to properly perform hereunder.

17. INSURANACE: If this purchase order covers services to be performed by Seller or premises designated by Buyer, Seller agrees to
provide Buyer with Certificates of Insurance evidencing insurance coverage of Worker’s Compensation (statutory) and Employers
liability ($1,000,000 limit) Public Liability (with minimum combined Single Limits of $ 1,000,000 for Bodily Injury and Property
Damage) and to save, defend hold harmless indemnify Buyer from and against all losses, damages and expenses that may arise
from bodily injury(ies) including death(s) at any time resulting therefrom to any person, or from damage to any property, caused in
whole or in part by the acts or omissions of Seller its agents or servants arising out of such services as may be performed on
premises designed by Buyer Seller will comply with all applicable with all applicable Federal or State Occupational Safety and
Health Acts and Workers Compensation Laws and regulations and with all plant safety rules: Seller also agrees, when work is to be
one on premises designated by Buyer to keep such premises free and clear of all Mechanic’s liens.

18. NOTICE OF LABOR DISPUTE: Should any potential or actual labor dispute delay or threaten to delay the timely performance of this
purchase order, Seller will immediately give notice to Buyer.

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