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5. The Purchaser shall attest to the hours worked by the erection personnel towards the Supplier at weekly intervals and the
Purchaser shall immediately confirm in written form if assembly, erection or commissioning has been completed.
6. If, after completion, the Supplier demands acceptance of the Supplies, the Purchaser shall comply therewith within a period
of two weeks. The same consequences as upon acceptance arise if and when the Purchaser lets the two week period expire or
the Supplies are put to use after completion of agreed test phases, if any.
Article VII: Receiving Supplies
The Purchaser shall not refuse to receive Supplies due to minor defects.
Article VIII: Defects as to Quality
The Supplier shall be liable for defects as to quality ("Sachmängel", hereinafter referred to as "Defects",) as follows:
1. Defective parts or defective services shall be, at the Supplier's discretion, repaired, replaced or provided again free of charge,
provided that the reason for the Defect had already existed at the time when the risk passed.
2. Claims for repair or replacement are subject to a statute of limitations of 12 months calculated from the start of the statutory
statute of limitations; the same shall apply mutatis mutandis in the case of rescission and reduction. This shall not apply where
longer periods are prescribed by law according to Sec. 438 para. 1 No. 2 (buildings and things used for a building), Sec. 479
para. 1 (right of recourse), and Sec. 634a para. 1 No. 2 (defects of a building) German Civil Code ("Bürgerliches Gesetzbuch"),
in the case of intent, fraudulent concealment of the Defect or non-compliance with guaranteed characteristics
(“Beschaffenheitsgarantie”). The legal provisions regarding suspension of the statute of limitat
ions ("Ablaufhemmung",
"Hemmung") and recommencement of limitation periods shall be unaffected.
3. Notifications of Defect by the Purchaser shall be given in written form without undue delay.
4. In the case of notification of a Defect, the Purchaser may withhold payments to an amount that is in a reasonable proportion
to the Defect. The Purchaser, however, may withhold payments only if the subject-matter of the notification of the Defect
involved is justified and incontestable. The Purchaser has no right to withhold payments to the extent that its claim of a Defect is
time-barred. Unjustified notifications of Defect shall entitle the Supplier to demand reimbursement of its expenses by the
Purchaser.
5. The Supplier shall be given the opportunity to repair or to replace the defective good ("Nacherfüllung") within a reasonable
period of time.
6. If repair or replacement is unsuccessful, the Purchaser is entitled to rescind the contract or reduce the remuneration; any
claims for damages the Purchaser may have according to No. 10 shall be unaffected.
7. There shall be no claims based on Defect in cases of insignificant deviations from the agreed quality, of only minor
impairment of usability, of natural wear and tear, or damage arising after the passing of risk from faulty or negligent handling,
excessive strain, unsuitable equipment, defective civil works, inappropriate foundation soil, or claims based on particular
external influences not assumed under the contract, or from non-reproducible software errors. Claims based on defects
attributable to improper modifications or repair work carried out by the Purchaser or third parties and the consequences thereof
are likewise excluded.
8. The Purchaser shall have no claim with respect to expenses incurred in the course of supplementary performance, including
costs of travel, transport, labor, and material, to the extent that expenses are increased because the subject matter of the
Supplies has subsequently been brought to another location than the Purchaser's branch office, unless doing so complies with
the normal use of the Supplies.
9. The Purchaser's right of recourse against the Supplier pursuant to Sec. 478 BGB is limited to cases where the Purchaser has
not concluded an agreement with its customers exceeding the scope of the statutory provisions governing claims based on
Defects. Moreover, No. 8 above shall apply mutatis mutandis to the scope of the right of recourse the Purchaser has against the
Supplier pursuant to Sec. 478 para. 2 BGB.
10. The Purchaser shall have no claim for damages based on Defects. This shall not apply to the extent that a Defect has been
fraudulently concealed, the guaranteed characteristics are not complied with, in the case of loss of life, bodily injury or damage
to health, and/or intentionally or grossly negligent breach of contract on the part of the Supplier. The above provisions do not
imply a change in the burden of proof to the detriment of the Purchaser. Any other or additional claims of the Purchaser
exceeding the claims provided for in this Article VIII, based on a Defect, are excluded.
