General Conditions of Delivery

for the Supply of Products and Services of the Electrical and Electronics Industry ("Grüne Lieferbedingungen" – GL)*
for commercial transactions between businesses
recommended by ZVEI-Zentralverband Elektrotechnik- und Elektronikindustrie e. V. 

as of January 2018

* The original German text shall be the governing version.

Article I: General Provisions

Article I: General Provisions

1. Legal relations between Supplier and Purchaser in connection with  supplies  and/or  services  of  the  Supplier  (hereinafter  referred  to  as  "Supplies")  shall  be  solely  governed  by  the  present  GL.  The  Purchaser's  general  terms  and  conditions  shall  apply  only  if  expressly  accepted  by  the  Supplier  in  writing.  The  scope  of  delivery  shall  be  determined  by  the  congruent mutual written declarations.

2.   The   Supplier   herewith   reserves   any   industrial   property   rights  and/or  copyrights  and  rights  of  use  pertaining  to  its  cost  estimates,  drawings  and  other  documents  (hereinafter  referred  to  as  "Documents").  The  Documents  shall  not  be  made accessible to third parties without the Supplier's prior consent and shall, upon request, be returned without undue delay  to  the  Supplier  if  the  contract  is  not  awarded  to  the  Supplier. Sentences 1 and 2 shall apply mutatis mutandis to the  Purchaser's  Documents;  these  may,  however,  be  made  accessible  to  those  third  parties  to  whom  the  Supplier  has  rightfully subcontracted Supplies.

3.  The  Purchaser  has  the  non-exclusive  right  to  use  standard  software and firmware, provided that it remains unchanged, is  used  within  the  agreed  performance  parameters,  and  on  the  agreed  equipment.  Without  express  agreement  the  Purchaser may make one back-up copy of standard software.

4. Partial deliveries are allowed, unless they are unreasonable to accept for the Purchaser.

5.  The  term  „claim  for  damages"  used  in  the  present  GL  also  includes claims for indemnification for useless expenditure.

Article II: Prices, Terms of Payment, and Set-Off

1.  Prices  are  ex  works  and  excluding  packaging;  value  added  tax shall be added at the then applicable rate

2.  If  the  Supplier  is  also  responsible  for  assembly  or  erection  and  unless  otherwise  agreed,  the  Purchaser  shall  pay  the  agreed remuneration and any incidental costs required, e. g. for traveling and transport as well as allowances.

3.   Payments shall be made free Supplier's paying office.

4.  The  Purchaser  may  set  off  only  those  claims  which  are  undisputed or non-appealable.

Article III: Retention of Title

1.  The  items  pertaining  to  the  Supplies  ("Retained  Goods")  shall  remain  the  Supplier's  property  until  each  and  every  claim the Supplier has against the Purchaser on account of the business relationship has been fulfilled. If the combined value  of  the  Supplier's  security  interests  exceeds  the  value  of all secured claims by more than 20 %, the Supplier shall release  a  corresponding  part  of  the  security  interest  if  so  requested by the Purchaser; the Supplier shall be entitled to choose which security interest it wishes to release

2. For the duration of the retention of title, the Purchaser may not pledge the Retained Goods or use them as security, and resale  shall  be  possible  only  for  resellers  in  the  ordinary  course of their business and only on condition that the reseller receives  payment  from  its  customer  or  makes  the  transfer  of  property  to  the  customer  dependent  upon  the  customer  fulfilling its obligation to effect payment.

3.  Should  Purchaser  resell  Retained  Goods,  it  assigns  to  the  Supplier,  already  today,  all  claims  it  will  have  against  its  customers  out  of  the  resale,  including  any  collateral  rights  and all balance claims, as security, without any subsequent declarations  to  this  effect  being  necessary.  If  the  Retained  Goods are sold on together with other items and no individual price has been agreed with respect to the Retained Goods, Purchaser  shall  assign  to  the  Supplier  such  fraction  of  the  total price claim as is attributable to the price of the Retained Goods invoiced by Supplier.

4.   (a)      Purchaser   may   process,   amalgamate   or   combine   Retained Goods with other items. Processing is made for Supplier. Purchaser shall store the new item thus created for Supplier, exercising the due care of a diligent business person.  The  new  items  are  considered  as  Retained  Goods. (b)    Already  today,  Supplier  and  Purchaser  agree  that  if  Retained  Goods  are  combined  or  amalgamated  with  other items that are not the property of Supplier, Supplier shall acquire co-ownership in the new item in proportion of   the   value   of   the   Retained   Goods   combined   or   amalgamated to the other items at the time of combination or  amalgamation.  In  this  respect,  the  new  items  are  considered as Retained Goods.(c)    The provisions on the assignment of claims according to No. 3 above shall also apply to the new item. The assignment, however,  shall  only  apply  to  the  amount  corresponding  to  the value invoiced by Supplier for the Retained Goods that have been processed, combined or amalgamated. (d)    Where  Purchaser  combines  Retained  Goods  with  real  estate  or  movable  goods,  it  shall,  without  any  further  declaration  being  necessary  to  this  effect,  also  assign  to  Supplier  as  security  its  claim  to  consideration  for  the  combination,  including  all  collateral  rights  for  the  pro-rata amount of the value the combined Retained Goods have  on  the  other  combined  items  at  the  time  of  the  combination.

5.  Until  further  notice,  Purchaser  may  collect  assigned  claims  relating   to   the   resale.   Supplier   is   entitled   to   withdraw   Purchaser's  permission  to  collect  funds  for  good  reason,  including, but not limited to delayed payment, suspension of payments, start of insolvency proceedings, protest or justified indications   for   overindebtedness   or   pending   insolvency   of  Purchaser.  In  addition,  Supplier  may,  upon  expiry  of  an  adequate  period  of  notice  disclose  the  assignment,  realize  the claims assigned and demand that Purchaser informs its customer of the assignment.

6.  The  Purchaser  shall  inform  the  Supplier  forthwith  of  any  seizure  or  other  act  of  intervention  by  third  parties.  If  a  reasonable interest can be proven, Purchaser shall, without undue  delay,  provide  Supplier  with  the  information  and/or Documents necessary to assert the claims it has against its customers.

7.   Where the Purchaser fails to fulfill its duties, fails to make payment due, or otherwise violates its obligations the Supplier shall  be  entitled  to  rescind  the  contract  and  take  back  the  Retained  Goods  in  the  case  of  continued  failure  following  expiry  of  a  reasonable  remedy  period  set  by  the  Supplier;  the statutory provisions providing that a remedy period is not needed shall be unaffected. The Purchaser shall be obliged to return the Retained Goods. The fact that the Supplier takes back Retained Goods and/or exercises the retention of title, or has the Retained Goods seized, shall not be construed to constitute a rescission of the contract, unless the Supplier so expressly declares.

Article IV: Time for Supplies; Delay

1. Times set for Supplies shall only be binding if all Documents to  be  furnished  by  the  Purchaser,  necessary  permits  and  approvals, especially concerning plans, are received in time and if agreed terms of payment and other obligations of the Purchaser are fulfilled. If these conditions are not fulfilled in time,  times  set  shall  be  extended  reasonably;  this  shall  not  apply if the Supplier is responsible for the delay.

2. If non-observance of the times set is due to:(a)    force  majeure,  such  as  mobilization,  war,  terror  attacks,  rebellion or similar events (e. g. strike or lockout);(b)   virus attacks or other attacks on the Supplier’s IT systems occurring despite protective measures were in place that complied with the principles of proper care;(c)    hindrances  attributable  to  German,  US  or  otherwise  applicable  national,  EU  or  international  rules  of  foreign  trade law or to other circumstances for which Supplier is not responsible; or(d)  the fact that Supplier does not receive its own supplies in due time or in due formsuch times shall be extended accordingly.

3. If the Supplier is responsible for the delay (hereinafter referred to as "Delay") and the Purchaser has demonstrably suffered a loss therefrom, the Purchaser may claim a compensation as liquidated damages of 0.5 % for every completed week of Delay, but in no case more than a total of 5 % of the price of that part of the Supplies which due to the Delay could not be put to the intended use.

4. Purchaser's claims for damages due to delayed Supplies as well as claims for damages in lieu of performance exceeding the limits specified in No. 3 above are excluded in all cases of  delayed  Supplies,  even  upon  expiry  of  a  time  set  to  the  Supplier to effect the Supplies. This shall not apply in cases of liability based on intent, gross negligence, or due to loss of  life,  bodily  injury  or  damage  to  health.  Rescission  of  the  contract by the Purchaser based on statute is limited to cases where  the  Supplier  is  responsible  for  the  delay.  The  above  provisions do not imply a change in the burden of proof to the detriment of the Purchaser.

5. At the Supplier's request, the Purchaser shall declare within a  reasonable  period  of  time  whether  it,  due  to  the  delayed  Supplies,  rescinds  the  contract  or  insists  on  the  delivery  of  the Supplies.

6. If dispatch or delivery, due to Purchaser's request, is delayed by more than one month after notification of the readiness for  dispatch  was  given,  the  Purchaser  may  be  charged,  for  every additional month commenced, storage costs of 0.5 % of the price of the items of the Supplies, but in no case more than a total of 5 %. The parties to the contract may prove that higher or, as the case may be, lower storage costs have been incurred.

Article V: Passing of Risk

1.  Even  where  delivery  has  been  agreed  freight  free,  the  risk  shall pass to the Purchaser as follows:(a)    if  the  delivery  does  not  include  assembly  or  erection,  at  the  time  when  it  is  shipped  or  picked  up  by  the  carrier.  Upon  the  Purchaser's  request,  the  Supplier  shall  insure  the  delivery  against  the  usual  risks  of  transport  at  the  Purchaser's expense;(b)    if the delivery includes assembly or erection, at the day of taking over in the Purchaser's own works or, if so agreed, after a successful trial run.

2.  The  risk  shall  pass  to  the  Purchaser  if  dispatch,  delivery,  the start or performance of assembly or erection, the taking over in the Purchaser's own works, or the trial run is delayed for  reasons  for  which  the  Purchaser  is  responsible  or  if  the  Purchaser has otherwise failed to accept the Supplies.

Article VI: Assembly and Erection

Unless  otherwise  agreed  in  written  form,  assembly  and  erection shall be subject to the following provisions:1. Purchaser shall provide at its own expense and in due time:(a)    all  earth  and  construction  work  and  other  ancillary  work  outside  the  Supplier's  scope,  including  the  necessary  skilled  and  unskilled  labor,  construction  materials  and  tools;(b)   the equipment and materials necessary for assembly and commissioning  such  as  scaffolds,  lifting  equipment  and  other devices as well as fuels and lubricants;(c)    energy  and  water  at  the  point  of  use  including  connec-tions, heating and lighting;   (d)    suitable dry and lockable rooms of sufficient size adjacent to  the  site  for  the  storage  of  machine  parts,  apparatus,  materials, tools, etc. and adequate working and recreation rooms  for  the  erection  personnel,  including  sanitary  facilities as are appropriate in the specific circumstances; furthermore,  the  Purchaser  shall  take  all  measures  it  would  take  for  the  protection  of  its  own  possessions  to  protect the possessions of the Supplier and of the erection personnel at the site;(e)  protective clothing and protective devices needed due to particular conditions prevailing on the specific site.

2.   Before   the   erection   work   starts,   the   Purchaser   shall   unsolicitedly   make   available   any   information   required   concerning the location of concealed electric power, gas and water lines or of similar installations as well as the necessary structural data.

3.  Prior  to  assembly  or  erection,  the  materials  and  equipment  necessary for the work to start must be available on the site 
of assembly or erection and any preparatory work must have advanced  to  such  a  degree  that  assembly  or  erection  can  be  started  as  agreed  and  carried  out  without  interruption.  Access roads and the site of assembly or erection must be level and clear.

4.  If  assembly,  erection  or  commissioning  is  delayed  due  to  circumstances for which the Supplier is not responsible, the Purchaser  shall  bear  the  reasonable  costs  incurred  for  idle  times and any additional traveling expenditure of the Supplier or the erection personnel.

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

he   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), and Sec. 634a para. 1 No. 2 (defects of a building) German Civil Code ("Bürgerliches Gesetzbuch"), - in the case of intent, - in the case of fraudulent concealment of the Defect or -  non-compliance  with  guaranteed  characteristic  (“Beschaf-fenheitsgarantie”).Claims for the reimbursement of expenses on the part of the Purchaser in accordance with Sec. 445a BGB (entrepreneur’s right  of  recourse)  shall  likewise  be  subject  to  a  statute  of  limitations of 12 months from the start of the statutory statute of limitations, provided the last contract in the supply chain is not a sale of consumer goods. The  legal  provisions  regarding  suspension  of  the  statute  of  limitations     ("Ablaufhemmung",     "Hemmung")     and     re- commencement 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 claims for Defects, the Purchaser may withhold payments to an amount that is in a reasonable proportion to the Defect. 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,  installation/removal, 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, 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.  This applies accordingly to claims for the reimbursement of expenses  on  the  part  of  the  Purchaser  in  accordance  with  Sec. 445a BGB (entrepreneur’s right of recourse), provided the last contract in the supply chain is not a sale of consumer goods.

9.  The  Purchaser's  right  of  recourse  against  the  Supplier  pursuant  Sec.  445a  BGB  (entrepreneur’s  right  of  recourse)  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.

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.

Article IX: Industrial Property Rights and Copyrights; Defects in Title

1.  Unless  otherwise  agreed,  the  Supplier  shall  provide  the  Supplies in the country of the place of delivery only, without infringing   any   third-party   industrial   property   rights   and   copyrights  (hereinafter  referred  to  as  “IPR”).  If  a  third  party  asserts a justified claim against the Purchaser based on an infringement of an IPR by the Supplies made by the Supplier and  used  in  conformity  with  the  contract,  the  Supplier  shall  be liable to the Purchaser within the time period stipulated in Article VIII No. 2 as follows:(a)  The Supplier shall choose whether to acquire, at its own expense,  the  right  to  use  the  IPR  with  respect  to  the  Supplies  concerned  or  whether  to  modify  the  Supplies  such  that  they  no  longer  infringe  the  IPR  or  replace  
them.  If  this  would  be  impossible  for  the  Supplier  under  reasonable  conditions,  the  Purchaser  may  rescind  the  contract  or  reduce  the  remuneration  pursuant  to  the  applicable statutory provisions;(b)    The  Supplier's  liability  to  pay  damages  is  governed  by  Article XII;(c)    The  above  obligations  of  the  Supplier  shall  apply  only  if the Purchaser (i) immediately notifies the Supplier of any such claim asserted by the third party in written form, (ii)  does  not  concede  the  existence  of  an  infringement  and  (iii)  leaves  any  protective  measures  and  settlement  negotiations to the Supplier's discretion. If the Purchaser stops using the Supplies in order to reduce the damage or for other good reason, it shall be obliged to point out to the third party that no acknowledgement of the alleged infringement  may  be  inferred  from  the  fact  that  the  use  has been discontinued.

2. Claims of the Purchaser shall be excluded if it is responsible for the infringement of an IPR.

3. Claims of the Purchaser are also excluded if the infringement of the IPR is caused by specifications made by the Purchaser, by  a  type  of  use  not  foreseeable  by  the  Supplier  or  by  the  Supplies  being  modified  by  the  Purchaser  or  being  used together with products not provided by the Supplier.

4. In addition, with respect to claims by the Purchaser pursuant to No. 1 a) above, Article VIII Nos. 4, 5, 8, and 9 shall apply mutatis mutandis in the event of an infringement of an IPR.

5.  Where  other  defects  in  title  occur,  Article  VIII  shall  apply  mutatis mutandis.

6. Any other claims of the Purchaser against the Supplier or its agents or any such claims exceeding the claims provided for in this Article IX, based on a defect in title, are excluded.

 Article X: Conditional Performance

1.  The  performance  of  this  contract  is  conditional  upon  that  no  hindrances  attributable  to  German,  US  or  otherwise  applicable national, EU or international rules of foreign trade law or any embargos or other sanctions exist.

2. The Purchaser shall provide any information and Documents required for export, transport and import purposes.

Article XI: Impossibility of Performance; Adaptation of Contract

1.  To  the  extent  that  delivery  is  impossible,  the  Purchaser  is  entitled  to  claim  damages,  unless  the  Supplier  is  not  responsible  for  the  impossibility.  The  Purchaser's  claim  for  damages is, however, limited to an amount of 10 % of the value of the part of the Supplies which, owing to the impossibility, cannot  be  put  to  the  intended  use.  This  limitation  shall  not  apply in the case of liability based on intent, gross negligence or loss of life, bodily injury or damage to health; this does not imply a change in the burden of proof to the detriment of the Purchaser. The Purchaser's right to rescind the contract shall be unaffected.2.  Where  events  within  the  meaning  of  Article  IV  No.  2  (a)  to  (c)  substantially  change  the  economic  importance  or  the  contents of the Supplies or considerably affect the Supplier's business,  the  contract  shall  be  adapted  taking  into  account  the principles of reasonableness and good faith. To the extent this is not justifiable for economic reasons, the Supplier shall have  the  right  to  rescind  the  contract.  The  same  applies  if  required  export  permits  are  not  granted  or  cannot  be  used.  If  the  Supplier  intends  to  exercise  its  right  to  rescind  the  contract,  it  shall  notify  the  Purchaser  thereof  without  undue  delay  after  having  realized  the  repercussions  of  the  event;  this shall also apply even where an extension of the delivery period has previously been agreed with the Purchaser.

Article XII: Other Claims for Damages

1.   Unless   otherwise   provided   for   in   the   present   GL,   the   Purchaser has no claim for damages based on whatever legal reason, including infringement of duties arising in connection with the contract or tort.

2. This does not apply if liability is based on:(a)   the German Product Liability Act (“Produkthaftungsgesetz”);(b)   intent;(c)      gross   negligence   on   the   part   of   the   owners,   legal   representatives or executives;(d)   fraud;(e)  failure to comply with a guarantee granted;(f)    negligent injury to life, limb or health; or(g)    negligent  breach  of  a  fundamental  condition  of  contract  (“wesentliche Vertragspflichten”).However,  claims  for  damages  arising  from  a  breach  of  a  fundamental  condition  of  contract  shall  be  limited  to  the  foreseeable   damage   which   is   intrinsic   to   the   contract,   provided that no other of the above case applies.

3. The above provision does not imply a change in the burden of proof to the detriment of the Purchaser.

Artikel XIII: Venue and Applicable law

1. If the Purchaser is a businessman, sole venue for all disputes arising  directly  or  indirectly  out  of  the  contract  shall  be  the  Supplier's place of business. However, the Supplier may also bring an action at the Purchaser's place of business.

2.   This   contract   and   its   interpretation   shall   be   governed   by  German  law,  to  the  exclusion  of  the  United  Nations  Convention on contracts for the International Sale of Goods (CISG).

Article XIV: Severability Clause

The legal invalidity of one or more provisions of this Agreement in no way affects the validity of the remaining provisions. This shall not apply if it would be unreasonably onerous for one of the parties to be obligated to continue the contract.