GENERAL TERMS AND CONDITIONS OF PURCHASE OF FRONTMET Energy Group B.V.
For the purpose of these general terms and conditions of purchase
“Agreement” shall mean the agreement entered into between Seller and Buyer for the supply of Goods and/or Services to Buyer as set out in Clause 3, incorporating these Conditions;
“Buyer” shall mean Frontmet Energy Group b.v., a limited liability company having its statutory seat in Rotterdam, with its registered address at Westerlaan 15 in Rotterdam, including its successors in title, assigns and/or transferees as the case may be;
“Conditions” shall mean these General Terms and Conditions of Purchase of Buyer;
“In writing” shall mean by (registered) mail, by fax and/or by e-mail;
“Goods” shall mean the goods and services forming the subject matter of the Agreement. References to Goods shall, where appropriate, be deemed to include any services to be rendered by Seller to Buyer under the Agreement;
“Order” shall mean the purchase order for Goods and/or Services issued in writing by Buyer to the Seller containing, amongst other things, a description of the Goods and/or Services to be supplied and include all documents, standards and drawings therein referred to, and incorporate these Conditions.
”Parties” shall mean Buyer and Seller;
“Seller” shall mean each person or legal entity which enters into the Agreement with Buyer for the supply of Goods;
“Services” shall mean all activities carried out by or on behalf of the Seller or its subcontractors in order to comply with the Sellers obligations or in preparation of the delivery of the Goods;
2.1 These Conditions shall apply to all Agreements entered into by Buyer and Seller for the supply of Goods as well as to all offers, all order confirmations by Seller for the supply of Goods to Buyer, all requests for offers, all offers and all Orders by Buyer, and shall form an integral part thereof.
2.2 These Conditions supersede any and all prior oral and written quotations, communications, agreements and understandings of the parties in respect of the purchase and delivery of the Goods and shall apply in preference to and supersede any and all terms and conditions of any offer, quotation, price list, order confirmation, acknowledgement, invoice and/or any other documentation used by Seller and any other terms and conditions submitted by Seller. Seller’s terms and conditions of sale are hereby expressly rejected. Failure of Buyer to object to Seller’s terms and conditions shall in no event be construed as an acceptance of any terms and conditions of Seller. The confirmation or implementation of the Order including delivery of the Goods and/or (commencement of) performance of Services by Seller with respect to the Order shall be deemed to be an acceptance of these Conditions.
2.3 By contracting on the basis of these Conditions, Seller also agrees to the applicability thereof in respect of all future dealings between Buyer and Seller for the supply of Goods, even if this is not expressly stated. Buyer shall be entitled to update and/or amend these Conditions regularly and by and as of the moment of notifying Seller of such update or amendment or by sending Seller the updated or amended Conditions, these revised Conditions shall apply to all dealings between Buyer and Seller.
2.4 In case of conflict between these Conditions and the terms of the Agreement, the Agreement shall prevail.
3. Conclusion of Agreement
3.1 Seller’s offers, including but not limited to Seller’s price quotations shall be considered an irrevocable offer with respect to the prices, quantities, times of delivery and other essential parts of such offer. All costs incurred by Seller in preparing and submitting any acceptance of Buyer’s request for an offer or Seller’s Order shall be for the account of Seller.
3.2 Buyer shall issue an Order in writing to Seller and such written Order shall be binding on the Seller and shall be deemed accepted as is by Seller (“Agreement”) unless such Order is rejected in writing or accepted with modifications, within two (2) working days from the date of the Order. If Seller’s notice of acceptance and/or Seller’s confirmation of an Order contains any modifications whatsoever or differs in any other aspect from the original Order placed, this will constitute a new offer to Buyer, which has to be accepted by Buyer explicitly in writing. Orders placed in person or by telephone shall require Buyer’s written confirmation in order to be valid.
3.3 Buyer reserves the right to revoke any Order placed with Seller if Seller has not responded to Buyer’s Order in conformity with Clause 3.2. In the event of revocation Seller shall not be entitled to payment of (any part of) the purchase price for the Goods or any kind of compensation and/or damages whatsoever.
3.4 No amendment, addition, complement and/or any other variation whatsoever to the Agreement and/or to these Conditions shall apply unless expressly accepted in writing by Buyer.
4. Prices and Payment
4.1 All prices quoted in the Agreement are fixed firm and not subject to revision. Prices are inclusive of all taxes (VAT excepted), duties, charges, contributions, insurances and all other costs, including but not limited to the costs of packing or packaging required to prevent damage or deterioration of the Goods while in transit to Buyer, incurred by Seller in performing the Order up to and including Goods’ delivery at the final location indicated by Buyer.
4.2 If the transactions as described in the Agreement are subject to any applicable VAT or any other similar tax, Seller shall be allowed to charge VAT or any other similar tax to Buyer, which shall be paid by Buyer on top of the purchase price. Seller is responsible for paying any applicable VAT or any other similar tax to the appropriate (tax) authorities.
4.3 Subject to acceptance of the Goods by Buyer, payment shall be made by bank transfer within sixty (60) days from the end of the month of the receipt of the correct invoice in the proper form. Each invoice shall specify Buyer’s name, a reference to the respective Order, the applicable Order number, date of the Order, Buyer’s VAT number, description of the delivered Goods, the invoice amount and separately the amount of any applicable VAT, Seller’s identification and all legally required details with respect to tax deduction and shall conform to customs regulations. The invoice shall be received at the address of Buyer indicated in the Order.
4.4 If Seller fails to fulfil any obligations under the Agreement or if Buyer has justifiable grounds to believe that Seller has failed to deliver and/or perform as agreed, Buyer may withhold payment to Seller and Seller shall not suspend performance of its obligations.
4.5 Buyer shall at all times have the right to set off and deduct from any amounts owing from Buyer to Seller against any amount owing from Seller to Buyer irrespective of the nature of any such claim. Seller shall not have a right of retention.
4.6 Payment by Buyer or on behalf of Buyer will not be construed as acknowledgement that Goods were delivered without non-conformities and does not discharge Seller from any warranty, duty and/or liability under the Agreement and under these Conditions.
5.1 Seller shall pack Goods properly and, in such manner, as to prevent damage to the Goods during transportation and to facilitate efficient unloading, handling and storage. Seller shall at his own costs insure all Goods up to the point when delivery is complete in accordance with Clause 10.
5.2 All Goods shall be properly marked, including but not limited to clearly marked as destined for Buyer and in accordance with (if any) Buyer’s instructions, set out Buyer’s Order number, Seller’s identification, place of delivery, declaration of contents, weight and quantity, date of shipment, date and method of dispatch and shall contain a certificate of country of origin and all other markings required for proper delivery.
5.3 Seller shall take all measures necessary to perform proper transportation of the Goods by all appropriate means and using all appropriate equipment and accessories, with the assistance of competent agents or subcontractors where necessary. And Seller shall organize transportation of the Goods to the agreed place of delivery in such manner that the Goods will be delivered in good condition and will be unloaded in a safe, secure and efficient way. And the agreed shipping conditions shall be observed strictly, and Seller shall be liable in full for any damage and cost arising from non-compliance with such shipping conditions. Shipment by a forwarding agent shall be subject to Buyer’s consent.
5.4 Without prejudice to Clause 5.1, 5.2 and 5.3, all information held by, or reasonably available to Seller regarding any potential hazards known or believed to exist in connection with the Goods, including but not limited to the transport, handling or use of the Goods to be supplied, shall be promptly communicated to Buyer. Seller shall provide Buyer with a safety data sheet and/or accident instruction sheet in accordance with the applicable laws and regulations including but not limited to health, safety and environmental regulations, with respect to Goods which, due to their nature, qualities, or state may be harmful to human life, health and/or the environment, and which therefore may be subject to laws and regulations requiring special treatment in terms of packing, labelling, transportation, storage, handling and waste disposal. And Seller shall observe all laws and regulations, including but not limited to laws and regulations relating to the packing, marking, labelling, transportation, storage, handling and waste disposal of such Goods and shall provide Buyer with all information required to enable Buyer and its customers to comply with such laws and regulations.
6.1 Upon Buyer’s first request, Buyer shall be entitled to inspect and/or to assay the Goods before, during or after delivery, including the conduct of any quality investigations and/or testing it deems necessary.
6.2 Buyer reserves the right to entrust the inspection and/or testing of the Goods to third parties. For the purpose of such inspections and the inspections and/or assaying as set out in Clause 6.1, Seller shall grant Buyer and its representatives free access to the relevant location at all times and shall fully cooperate and provide all necessary information and documentation with respect to the Goods at the
Seller’s own expense.
6.3 Inspection of the Goods by or on behalf of Buyer shall not constitute acceptance by Buyer and shall not release Seller from any of its obligations and warranties under the Agreement and/or the Conditions.
6.4 If the results of such inspection or assay cause the Buyer not to accept the Goods. Buyer shall as soon as possible notify Seller of such rejection and Clause 9 NON-COMPLIANCE shall apply.
7. Delivery and Quantity
7.1 Seller shall deliver the Goods in accordance with the agreed upon INCOTERMS (as defined in the latest version of the Incoterms as issued by the International Chamber of Commerce, Paris, France) and at the agreed place and time, as all specified in the Order.
7.2 Seller shall deliver the quantity and quality specified in the Order. All Goods supplied on a price for weight basis shall be delivered to the agreed place of delivery and the weight of the Goods shall be determined by or on behalf of Buyer, by weighing at the agreed place. The net weight so recorded by or on behalf of the Buyer shall be the decisive weight for the Agreement. As far as the chemical and physical composition of the Goods is concerned, the values determined by Buyer or by Buyer’s surveyor acting on the Buyer’s behalf shall be binding values for such deliveries with regards to establishing the supplied quality and for the final settlement. Buyer shall be entitled to a reasonable period of time within which to prepare the quality assessment.
7.3 Time is of the essence and all delivery times set out in the Agreement shall be firm. Seller shall immediately notify Buyer in writing of any (possible) delays or any other issue which may have a material adverse effect on delivery of the Goods or on Seller’s performance of its other obligations under the Agreement, including but not limited to a change in Seller’s or Seller’s sub-suppliers financial condition, business or prospects. Simultaneously Seller shall provide Buyer all information in writing concerning the reason and/or extent of the delay, as well as all details relating to the efforts Seller intends to make in order to avoid delay or expedite delivery.
7.4 Buyer reserves the right to refuse partial deliveries or delivery prior to the agreed delivery date(s), and in such case may return the Goods or, at its choice, store them, storage and/or return of the Goods and any costs in connection therewith shall be at Seller’s costs and for Seller’s risk.
7.5 In the event of any breach with respect to the agreed delivery time Seller shall be in default, without any prior written notification of default to Seller and notwithstanding Buyer’s other rights under the Agreement or at law, Buyer may at its option:
(i) notify Seller that Buyer insists on delivery by Seller and Seller’s performance of its other obligations under the Agreement, and in addition Buyer shall be entitled, without any prior notification of default to Seller, to withhold liquidated damages from Seller in the amount of 1% of the Order value for each full week of delay, not to exceed a maximum of 10% of the total Order value until complete delivery has been effected. Such liquidated damages shall be without prejudice to Buyer’s right to claim compensation for all damages incurred in connection with such breach including but not limited to lost profits as well as any indirect financial and consequential damage suffered by Buyer in connection with such breach, or
(ii) Buyer may decide to rescind the Agreement and notwithstanding Buyer’s other rights under the Agreement or at law, Buyer shall also have the right to claim compensation for all damage incurred in connection with such breach including but not limited to lost profits as well as any indirect financial and consequential damage.
In case the Seller prior to the agreed date of delivery becomes aware that timely delivery will be partly or fully impossible, Seller shall promptly inform Buyer in writing to this effect stating the reasons as well as the expected delay. Such circumstances shall also entitle Buyer at its option to rescind the Agreement with immediate effect, even if this prior to the agreed delivery date, and to claim compensation for all damages incurred in connection with such breach.
7.6 Unless explicitly agreed otherwise, Buyer shall have the right to postpone delivery of the Goods. Upon Buyer’s request to postpone delivery of the Goods, Seller will pack such Goods properly and clearly mark them as destined for Buyer. Seller shall then store such Goods in a secured environment and shall arrange for proper insurance of such goods.
7.7 Signing of a receipt and/or bill of lading by or on behalf of Buyer upon delivery shall be deemed to only relate to receipt of the Goods and shall not constitute acceptance of the Goods in any way whatsoever.
8.1 The Seller explicitly warrants that:
– all Goods shall comply with all specifications, approved samples and all other requirements set out in the Agreement, including but not limited to the agreed volume and/or quantity and quality;
– all Goods shall be state of the art, are fit for the intended purposes, shall be of good quality and free from defects, deficiencies and non-conformities in design, materials and workmanship and that they shall satisfactorily fulfill the performance requirements expected by the Buyer; all Goods shall comply with all applicable laws and regulations, including but not limited to European and national laws and regulations, international conventions including without limitation the applicable laws and regulations concerning both international and national transport of dangerous and/or chemical and/or waste products, and all other applicable national, European and international laws and regulations with respect to health, (product) safety and environment and; Title to all Goods transferred shall be free of seizures, restricted rights, title retentions and/or any liens or encumbrances whatsoever and;
– all required licenses in relation to the Goods are and shall remain valid and in place, and the scope of such licenses shall properly cover the intended use of the Goods and all such licenses shall include the right to transfer the Goods;
– Goods shall be provided with all instructions and information for safe and proper use and in case the Goods and/or Services incorporate or contain chemicals or dangerous hazardous goods or substances, such Goods and/or Services shall be provided with written and detailed specifications of the composition and characteristics of such Goods or substances and of all laws, regulations and other requirements relating to such Goods in order to enable Buyer to transport, store, process, use and dispose of such Goods in a proper and safe manner.
8.2 The warranties given under this Clause 8 shall be extended to any repaired or replacement Goods.
9.1 If the Goods are defective or are otherwise not in conformity with the requirements of the Agreement including these Conditions Buyer shall notify Seller thereof and may, without prejudice to Buyer’s right to compensation for any losses and/or damages suffered or to be suffered by it as a result of such breach or any other right available to Buyer under the Agreement or at law, at Buyer’s sole discretion:
a) reject the non-conforming Goods and return them to the Seller at the risk and cost of the Seller (including without limitation, inspection, handling and storage costs incurred by Buyer in connection therewith) and to require Seller at the Seller’s expense either to remedy any defect in the Goods or to supply replacement Goods and carry out any other necessary work to ensure that the terms of the Agreement are fulfilled within a period acceptable to the Buyer. If Seller fails to fulfill its obligations above within the prescribed time, Buyer may, without prejudice to any other available rights, undertake or engage a third party to completely fulfill all of Seller’s obligations under the Agreement at the risk and expense of Seller, including but not limited to cost of freight, disassembly and re-assembly or to obtain substitute goods elsewhere and recover from the Seller any expenditure reasonably incurred by the Buyer in obtaining such goods; or
b) to terminate the Agreement in whole or in part, by written notification to Seller but without judicial intervention and without any liability to Seller and without prejudice to Buyer’s right to (alternative and/or additional or other) compensation for any losses and/or damages suffered or to be suffered by it as a result of such termination, and Buyer may return the Goods already delivered against repayment by Seller. Returning of such Goods shall be for the account and risk of Seller.
9.2 In case of rejection title to and risk for the rejected Goods shall be with Seller again from the date of sending the rejection notice to Seller.
10. Ownership and risk
10.1 Title to the Goods shall transfer to the Buyer upon delivery thereof. Risk for the Goods shall pass from Seller to Buyer in accordance with the agreed upon Incoterm as stated in the Agreement (such Incoterm shall have the meaning as defined in the latest version of the Incoterms as issued by the International Chamber of Commerce, Paris, France). In case of absence of a specific Incoterm clause the risk for the Goods remains with Seller until arrival of the Goods at the agreed place of delivery and acceptance thereof in writing by Buyer by a person or company (on behalf of Buyer) duly authorized to do so.
10.2 Seller is obliged to transfer title to the Goods free of seizures, restricted rights, title retentions and/or any liens or encumbrances whatsoever.
10.3 Upon first demand of the Buyer, Seller shall disclose itself as party in interest and owner of the Goods as far as public legislation is concerned until the Goods are effectively in control and possession of the Buyer, who at all times has the right to decline to accept title in the Goods or to redeliver the Goods with immediate effect in case of events during storage or transportation which might involve public law responsibility of the owner of the Goods, regardless of whether the Seller has breached any contractual obligation. The Seller shall be obliged as also set out in Clause 11.3 to insure himself and any other party in interest for liability towards third parties, again regardless of any breach of contractual obligations by Seller.
11.1 Seller shall be liable for any direct, indirect or consequential losses and/or liabilities (all three of which terms include, without limitation, environmental liability, loss of profit, loss of business), increased cost, loss, damages, injury, claims, actions, proceedings, charges, cost and expenses (including but not limited to attorney fees, litigation costs and other professional fees and expenses), suffered or incurred by or brought against Buyer, Frontmet Energy Group b.v. or any third party, resulting from or connected with the non-fulfillment or late or improper fulfillment of Seller’s obligations and warranties under the Agreement or any other breach of Seller’s obligations under the Agreement or at law.
11.2 Seller shall keep Buyer harmless from and indemnified in full against all suits, actions, legal or administrative proceedings, charges, claims, demands, damages, liabilities, loss (including loss of profits), attorney’s fees, costs and expenses of whatsoever kind or nature (including but not limited to special, indirect, incidental, consequential damages) resulting from or connected with the nonfulfillment or late or improper fulfillment of Seller’s obligations and warranties under the Agreement or any other breach of Seller’s obligations under the Agreement or at law.
11.3 Seller shall take out and maintain in force all insurance policies necessary to cover its liability under the Agreement including these Conditions. At the request of Buyer Seller will provide the insurance certificates evidencing Seller’s coverage and shall keep Buyer informed of any changes. Seller shall procure that all its sub-suppliers will also meet the insurance requirements.
12.1 Seller shall keep confidential the existence and content of the Agreement and all technical, commercial and financial data and all other information of a confidential nature (“Confidential
information”) provided by or on behalf of Buyer to Seller in connection with the (preparation) of the Agreement. All such information shall remain Buyer’s property and may be used by Seller only for the purpose of the Agreement. And upon Buyer’s request Seller shall promptly return to Buyer all such information and Seller shall not retain any copy thereof.
12.2 Seller may only disclose such Confidential Information to third parties provided Buyer has given its prior written consent and Seller shall ensure that such third parties engaged by Seller in the execution of Seller’s duties shall undertake in writing to be bound by the same confidentiality undertaking.
12.3 Seller is not entitled to refer to (part of) the Order and/or the Agreement in external communication or publication without prior written consent of Buyer.
13. Intellectual Property Rights
13.1 Seller warrants that neither the Goods nor the sale thereof as covered by the Agreement, nor the use of the Goods will infringe upon or violate any trademarks, patents, copyright or any other legal rights of third parties. Seller shall fully indemnify and hold Buyer harmless from all actions, claims, liability, loss (including loss of profits), costs, attorney’s fees, expenses and damages due to or arising from any infringement of intellectual property rights. Upon Buyer’s request Seller shall at its own expense defend the Buyer against all such claims, actions or proceedings.
13.2 The right of ownership and copyrights in any designs, drawings, samples and any other data or information delivered to Seller belong to Buyer and shall be subject to the confidentiality obligations as set out in Clause 12.
14. Export control laws and customs
Seller shall obtain all international and national export licenses or similar permits required under all applicable export control laws and regulations and shall provide Buyer with all information required to enable Buyer and its customers to comply with such laws and regulations. Upon Buyer’s request Seller shall provide Buyer with an appropriate certification stating the country of origin for Goods and all other information required, sufficient to satisfy the requirements of the customs authorities of the country of receipt and any applicable export licensing regulations.
15. Force Majeure
15.1 In the event Seller is prevented from performing any of its obligations under this Agreement for reason of force majeure, Seller shall promptly inform the Buyer by written notice thereof specifying the cause of the event of force majeure and how it will affect its performance of its obligations under the Agreement and particularly the period of time said event may delay the timely performance of the Agreement.
15.2 Force majeure on the part of Seller shall in any event not include strikes affecting Seller, shortage of production materials or resources, breach of contract by third parties contracted by Seller. Unless agreed otherwise, the performance of the obligation concerned shall be suspended for the duration of the force majeure. If the circumstances constituting force majeure endures for more than thirty (30) days after the date of said notice Buyer shall be entitled to terminate this Agreement or any part thereof with immediate effect by written notice to Seller and without any obligation or liability of whatsoever kind to Seller. And Seller shall reimburse Buyer for any amounts already paid.
16. Suspension and termination
16.1 Buyer shall be entitled to suspend the performance of its obligations under the Agreement or to terminate the Agreement in whole or in part, by written notification to Seller but without judicial intervention, and in each case without any obligation or liability of whatsoever kind to Seller, in the event:
a) Seller has requested suspension of payment, becomes insolvent or unable to pay its debts, or goes into liquidation (otherwise than for the purposes of a reconstruction or amalgamation) or any bankruptcy proceedings are instituted by or against Seller or Seller makes an arrangement for the benefit of its creditors; or
b) substantial part of Seller’s assets has been attached or in the event the control over Seller is being transferred to a third party or if Seller ceases or threatens to cease to carry on its business; or
c) Seller fails to comply with any term or condition of the Agreement including these Conditions or Buyer in its reasonable discretion determines that Seller cannot or shall not deliver the Goods as required. All of the above shall be without prejudice to Buyer’s right to claim for (alternative and/or additional or other) compensation for any losses and/or damages suffered or to be suffered by Buyer as a result of such suspension and/or termination of the Agreement
16.2 In any of the above-mentioned events all outstanding claims of Buyer towards Seller shall become due and payable instantly and Seller may not set off any amounts owing from Buyer to Seller against any amount owing from Seller to Buyer.
17. Assignment and subcontracting
17.1 Seller shall not subcontract, transfer, pledge or assign any of its rights or obligations under this Agreement without the prior written consent of Buyer. Any such pre-approved subcontracting, transfer, pledge or assignment shall not release Seller from its obligations under the Agreement and Seller shall be liable for the selection and any default of its subcontractors and suppliers.
Failure by Buyer to enforce at any time any provision of the Agreement including these Conditions shall not be construed as a waiver of Buyer’s right to act or enforce any such term or condition and Buyer’s rights shall not be affected by any delay, failure or omission to enforce any such provision. No waiver by Buyer of any breach of Seller’s obligations shall constitute a waiver of any other prior or subsequent breach.
In the event that any provision of the Agreement, including these Conditions shall be held to be invalid or unenforceable, the same shall not affect in any respect whatsoever, the validity or
enforceability of the remaining provisions between the parties and shall be severed there from. The pertaining provisions held to be invalid or unenforceable shall be replaced by provisions satisfying the legal and economic intent of the original provisions to the maximum extent permitted by law.
20. Survival of rights
The parties’ rights and obligations shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns, directors, employees, agents and legal representatives. Termination of one or more of the rights and obligations of the parties, for whatever reason, shall not affect the provisions of these Conditions which are intended to have effect after such termination.
21. Governing law and Jurisdiction
21.1 The parties’ rights and obligations arising out of or in connection with Agreement shall be governed, construed, interpreted and enforced, exclusively in accordance with the law of the Netherlands. The applicability of UN Convention on Contracts for the International Sale of Goods concluded at Vienna on 11th of April 1980 is explicitly excluded.
21.2 Parties hereby agree that all disputes which cannot be resolved amicably shall be at the option of Buyer:
(i) submitted to the exclusive jurisdiction of the competent courts in Rotterdam, The Netherlands. without prejudice to Buyer’s right to bring any proceedings, suit or actions against Seller in any other court of competent jurisdiction including without limitation the courts having jurisdiction by reasons of the Seller’s domicile, and Seller hereby also consents to the jurisdiction of those courts and Seller waives any objection which Seller may have, now or thereafter, to the venue of those suits, actions or proceedings, or
(ii) finally settled in accordance with the Arbitration Rules of the Netherlands Arbitration Institute. The arbitral procedure shall be conducted in the English language in Rotterdam, the Netherlands.
THESE GENERAL CONDITIONS OF PURCHASE HAVE BEEN FILED AT THE OFFICE OF THE TRADE REGISTER OF THE CHAMBER OF COMMERCE OF ROTTERDAM, THE NETHERLANDS.
FRONTMET ENERGY GROUP B.V.