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General Terms and Conditions of Business

1. General, scope

1.1. VIVATEQ deliveries, services and quotations are solely governed by these General Terms and Conditions. They are a component of all contracts concluded between us and our customers for goods supplied by us. These General Terms and Conditions in their current version shall also apply as a master agreement for future contracts concerning the sale and/or supply of moveable property with the same buyer, even if not expressly agreed on subsequent occasions, provided said goods were received by the buyer as part of a prior confirmed order. By submitting the order the contractual partner declares being familiar with the Business Terms and Conditions and to agree to them.

1.2. Divergent, conflicting or supplemental Terms and Conditions shall not become components of the contract, even with knowledge thereof and not objected to by VIVATEQ, unless expressly agreed in writing as applicable.

1.3. These General Terms and Conditions apply only to companies, legal entities under public law and special funds under public law within the meaning of § 310 Para. 1 of the German Civil Code.

2. Quotation and conclusion of contract

2.1. Unless expressly indicated otherwise, all VIVATEQ quotations are subject to confirmation and non-binding. Documentation associated with the quotation, such as figures, drawings, weights and dimensions, are only approximate unless expressly indicated as binding. VIVATEQ reserves all ownership and copyrights in quotations, drawings and any other documents, and these may not be made accessible to third parties.

2.2. By placing an order the buyer bindingly declares his desire to purchase the goods ordered.

2.3. VIVATEQ is entitled to accept the offer to enter into a contract by means of the order within 2 weeks of receipt thereof. Such acceptance may be declared to the buyer either in writing or by delivery of goods. Information provided by VIVATEQ concerning goods and services shall only be deemed a component of the contract when specified in a binding quotation, written order confirmation or a written contract. Information and quotations refer to normal, standard quality and styles. General information concerning quality and style are deemed to be mean values. Subsidiary agreements and amendments require the written confirmation of VIVATEQ.

2.4. Discrepancies between the invoice or the delivery receipt and the actual goods delivered must promptly be reported by the buyer, no later than 3 days upon receipt of goods.

2.5. The contract is concluded subject to correct and timely delivery by VIVATEQ's suppliers. This applies only where the failure to deliver is beyond the control of VIVATEQ, in particular if VIVATEQ contracts a congruent hedging transaction with the sub-contracting supplier. The buyer will promptly be notified of such non-availability of the service. Any consideration shall be refunded without delay.

3. Pricing

3.1. Products distributed by VIVATEQ are subject to the price list valid on the date of delivery.

3.2. Prices are ex warehouse, not including packing, transport, insurance and installation.

3.3. Shipping and insurance costs pursuant to item 5 of the Terms and Conditions are payable by the buyer unless expressly agreed otherwise in writing.

3.4. Orders valued at less than € 100.00 (except replacement parts and additional deliveries) are subject to a processing fee of € 10.00.

3.5. All prices are net and subject to statutory Value Added Tax currently in force. VIVATEQ price lists do not constitute an offer to enter into a contract.

4. Conditions of delivery and passing of risk

4.1. Delivery deadlines or periods, whether binding or non-binding, must be indicated in writing.

4.2. The delivery period begins upon submission of the order confirmation, but not before the buyer has provided the necessary documents, permissions and approvals, nor before receipt of an agreed advance payment.

4.3. The agreed delivery period has been met when the despatched goods have left the warehouse or are ready for despatch within said period and the buyer has been notified thereof.

4.4. The delivery commitment ceases if the delivery has been rendered impossible in whole or in part by force majeure or any other unforeseeable events. This shall also apply if such circumstances occur with one of our delivery contractors. In these cases VIVATEQ shall be entitled to, at its discretion, withdraw from the contract or postpone delivery by the duration of the hindrance plus a reasonable lead period. In the latter case the buyer shall not be entitled to cancel orders, refuse partial deliveries or to assert claims for damages of any type. VIVATEQ may only invoke aforesaid circumstances if the customer was promptly notified.

4.5. The risk shall pass to the buyer upon the shipment leaving the VIVATEQ warehouse, in the case of pick-up, or when goods are shipped, upon being handed over to the freight forwarder, carrier or the person otherwise designated for despatch. This also applies if VIVATEQ is assuming shipping costs by special agreement, or if goods are shipped via VIVATEQ vehicles.

4.6. In the event despatch of goods becomes impossible through no fault of VIVATEQ, the risk shall pass to the buyer upon the buyer being notified of the goods being ready for despatch. Hand-over or acceptance is considered made if the buyer is delayed in acceptance.

5. Insurance

5.1. Subject to specific information from the customer, VIVATEQ shall insure all deliveries against loss, theft or other transit damage at the customer's expense.

5.2. The customer is responsible for taking any measures required under local law to allow a claim for transport damages to be settled.

6. Payment

6.1. VIVATEQ invoices are payable within 30 days net cash. This does not apply to invoices for services, e.g. repairs, programming, training, commissioning, etc. In these cases the payment term is 8 days net cash.

6.2. If dunning becomes necessary upon expiration of the payment deadline, the customer will be charged for costs thereby incurred.

6.3. VIVATEQ shall be entitled to charge default interest in the amount of 8% above the current bank rate of the European Central Bank, starting on the payment due date. Interest shall be set at a lower rate if the customer substantiates a lesser liability. A higher rate of interest may be charged if substantiated by VIVATEQ.

6.4. In the event a customer defaults in the payment of an invoice, all other open invoices shall become due for immediate payment irrespective of their due date.

6.5. VIVATEQ shall be entitled to offset payments in the first instance against such older debts regardless of contrary buyer terms. If interest and costs have already been accrued, VIVATEQ shall be entitled to first offset the payment against said costs, then against interest, and finally against the principal service. VIVATEQ shall notify the contractual partner as to how offsetting will be applied.

6.6. In the event the customer fails to comply with his obligations to pay, in particular if a cheque or bill of exchange is not honoured or payment thereof stopped, or VIVATEQ subsequently becomes aware of unfavourable pecuniary circumstances or the credit-worthiness of the contractual partner, VIVATEQ shall be entitled to demand payments in advance or provision of securities for all other contracts. If the buyer fails to pay the purchase price or provide securities within 2 weeks of such demand being made by VIVATEQ, VIVATEQ shall be entitled to withdraw from the contract. VIVATEQ shall be entitled to indemnity in the amount of 25% of the agreed purchase price. The customer shall be entitled to substantiate a lesser damage.

6.7. The buyer shall only be entitled to set-off or retention, insofar as a claim is legally enforceable or undisputed. In the event of defect of goods the rights of reciprocity, particular pursuant to § 8 Item 3 of these GTCs, shall remain unaffected.

7. Retention of title

7.1. The goods delivered by VIVATEQ shall remain the property of VIVATEQ until the debt arising from the contractual relationship has been paid in full, in particular until any current account balance has been satisfied and, in the case of payment by cheque or bill of exchange, until such payment has been successfully redeemed.

7.2. In the event the buyer violates the contract, particularly in the event of payment default, VIVATEQ shall be entitled to retract the delivery object, and the buyer shall be obliged to surrender said. Unless provisions of the Consumer Credit Act apply, VIVATEQ retracting such delivery object shall not constitute a withdrawal from the contract unless expressly specified by VIVATEQ in writing. If the goods are machined or processed by the customer, or linked or mixed with third party items, VIVATEQ's retention of title shall extend to these new articles or to the claims arising from them. In this respect VIVATEQ shall also be deemed manufacturer of the goods, and shall acquire title to said pursuant to §§ 947, 948 and 950 Of the German Civil Code. If the delivery object is processed with other objects not the property of VIVATEQ, VIVATEQ shall acquire the joint title to the new articles in proportion to the invoiced amount of the goods subject to retention of title to the other objects processed at the time of the processing.

7.3. The goods may not be pledged, assigned as security, or otherwise encumbered by third party rights until all debts have been paid in full. VIVATEQ must promptly be notified in writing of said goods being seized by third parties.

7.4. The buyer may resell the delivered goods - whether unprocessed, processed or mingled – through ordinary course of business, unless in default of payment.

7.5. As a precaution, the buyer shall at this time assign to VIVATEQ the debts due the buyer arising from the resale of the goods or from any other legal ground related to the goods (including all balance claims on a current account). If, in this case, the buyer fails to fulfil his duty of payment, VIVATEQ shall be entitled to notify the buyer's buyers of such, and to demand payment to VIVATEQ. The buyer shall then be obliged to provide VIVATEQ any evidence, documents and information required to assert this claim without delay.

7.6. VIVATEQ shall grant the buyer revocable authorisation to collect the debts assigned to VIVATEQ for said invoice in his own name. This direct debit authorisation may only be revoked, if the buyer fails to comply with his payment obligations.

7.7. The consent to resale does not, however, extend to reselling the goods to a third party making the assignment of debts owed by him dependent on his approval.

7.8. VIVATEQ agrees to release the securities due them at the buyer’s request when they are no longer required on more than a temporary basis, in particular when they exceed the value of the debt to be secured by more than 20% in the long term.

8. Warranty

8.1. VIVATEQ warrants the goods delivered to be free from substantial manufacturing defects or faulty materials. VIVATEQ grants no warranty for immaterial discrepancies due to the manufacturing process which impair neither the outward appearance nor the functionality.

8.2. Our liability for defects is first and foremost based on the agreed properties and condition of the goods. The designated VIVATEQ Product Specifications shall apply as an agreement on the properties and condition of the goods. Public statements (e.g. advertising messages), or manufacturer or third party product descriptions shall not represent any indication of quality of the goods as specified in this contract. VIVATEQ accepts no liability for such statements.

8.3. In the event correction of the defect or replacement fails, the buyer shall be entitled to demand a reduction in the purchase price (discount) or rescission of the contract. In the case of a merely immaterial infringement of the contract, particularly in the case of immaterial defects, the buyer shall however not be entitled to withdraw from the contract. Replaced parts are deemed the property of VIVATEQ.

8.4. The buyer shall notify VIVATEQ of obvious defects within 10 days of receipt of goods or, if the defect only becomes apparent at a later time, within 10 days upon discovery of the defect; asserting a warranty claim is otherwise excluded. Timely despatch of such notice shall suffice to comply with the term. The buyer shall bear the full burden of proof for all conditions of entitlement, in particular for the defect itself, for the exact time of the assessment of the defect, and for the timeliness of the notice of defect.

8.5. If the buyer decides to withdraw from the contract by reason of a defect in title or a defect in quality, he shall not also be entitled to a claim for compensation for damages. If, after supplementary performance has failed, the buyer decides to claim compensation for damages, the goods shall remain at the buyer’s premises where reasonable. Compensation for damages shall be limited to the difference between the purchase price and the value of the defective article. This shall not apply where VIVATEQ has maliciously breached the contract.

8.6. The warranty shall be valid for 1 year from the passing of risk on the goods. A warranty for pre-owned products and batteries and illuminants, etc. is excluded. The warranty for work performed and services is 1 year from the time of transfer.

8.7. If the buyer receives a defective assembly instructions manual, VIVATEQ shall be obliged only to deliver an assembly instructions manual free from defects, and only if the defect in the assembly instructions manual conflicts with proper assembly.

8.8. No guarantee shall granted for damage for the following reasons: improper or inappropriate use, incorrect assembly by the buyer or a third party, normal wear and tear, incorrect or negligent handling, unsuitable manufacturing equipment, substitute materials, faulty processing, improper foundation, chemical, electro-chemical or electrical impacts unless traceable to a culpable fault by VIVATEQ.

8.9. The buyer must allow VIVATEQ the time and opportunity necessary to carry out any rectifications of defects as coordinated with, and deemed necessary at VIVATEQ’s reasonable discretion. VIVATEQ shall otherwise be released from liability for defects. Only in urgent cases jeopardising operational safety and to avert disproportionate damage, in which case VIVATEQ must be notified immediately, or if VIVATEQ is late in rectifying the defect, is the buyer entitled to rectify the defect himself or to have it rectified by third parties, and to demand reimbursement of the necessary costs from VIVATEQ.

8.10. Modifications or corrective maintenance incorrectly performed by the buyer or a third party without the prior authorisation of VIVATEQ will void any liability and warranty.

9. Limitation of liability

9.1. Claims for compensation of damages arising from impossibility of performing the service, positive violation of contractual duty, culpa in contrahendo, or tort, are excluded both against VIVATEQ and against their vicarious agents and assistants, except in the event of intentional or grossly negligent conduct. This shall also apply to claims for compensation of damages due to nonfulfillment; however if compensation for indirect or consequential harm caused by a defect is demanded, liability shall be in form of an assurance to safeguard the buyer against the risk of such damages. VIVATEQ shall not be liable in the case of slightly negligent breach of immaterial contractual duties.

9.2. In the case of ordinary negligence, VIVATEQ shall be liable for damages arising from injury to life, limb or health, for damages arising from the breach of a material contractual duty (an obligation, the fulfilment of which is essential to the proper execution of contract and the compliance of which the contractual partner routinely relies and may rely); in this case however, liability shall be limited to the replacement of foreseeable damages typically occurring.

9.3. The limitations of liability arising from item 9.2 shall not apply if VIVATEQ has fraudulently concealed a defect or has granted a guarantee for the properties and condition of the goods. The same shall apply for claims under the Product Liability Act.

9.4. The buyer may only withdraw or give notice of withdrawing from the contract for breach of duty not constituting a defect, if VIVATEQ is responsible for the breach of duty. The buyer is not granted free right of termination.

9.5. Claims for compensation of damages by the buyer by reason of a defect are limited to a period of one year from the acceptance of goods. This does not apply if VIVATEQ committed gross negligence, both in the case of personal injury and injury to health, attributable to VIVATEQ, or in the case of the buyer’s loss of life. The statute of limitations under the Product Liability Act remains unaffected.

10. Returns

10.1. With the exception of justified complaints as specified under item 8, goods may only be returned with the prior consent of VIVATEQ. The invoice number and date must be referenced. 10.2. Insofar as VIVATEQ issues a credit, a minimum deduction in the amount of 5% of the purchase value, but no less than € 40.00 and Value Added Tax will be deducted, based on the condition of the goods (new, in original packaging, pre-owned). The customer shall remain at liberty to prove no depreciation in value or expense in this amount has been incurred. 10.3. Goods being accepted for return does not constitute a withdrawal from the contract, but payment in lieu of performance by the customer within the context of the contract. 10.4. VIVATEQ does not supply goods for trial.

11. Data protection

11.1. VIVATEQ shall be entitled to store and to process data related to the buyer obtained regarding or in conjunction with the business relationship within the meaning of the Federal German Data Protection Act, irrespective whether these were provided by the customer himself or third parties.

12. Place of performance, court of jurisdiction, partial invalidity

12.1. These General Terms and Conditions and the entire legal relationship between VIVATEQ and business partners shall solely be subject to the law of the Federal Republic of Germany. The application of the United Nations Convention on Contracts for the International Sale of Goods is excluded.

12.2. The place of performance and court of jurisdiction for any disputes arising from the contractual relationship with general merchants, legal entities under public law or special funds under public law shall be the registered office of VIVATEQ.

12.3. VIVATEQ, however, shall be entitled to lodge an action at the buyer’s general Court of jurisdiction.

12.4. In the event individual provisions of the contract including the General Terms and Conditions are or become invalid in whole or in part, the validity of the remaining provisions shall not be affected.

VIVATEQ Vertriebsgesellschaft für Communication Technology mbH

Uhingen/Fils

July 2013