LAKEVIEW FORGE COMPANY

and

THE ERIE TOOL WORKS DIVISION

 

Terms and Conditions of Quotation

 

Unless otherwise agreed in writing specifically referring to the following terms and conditions, or modified on our Quotation, this Quotation is made subject to the terms and conditions which are usual in the Drop Forging Industry:

 

1.        NOT AN OFFER.  This is only a quotation and not an offer for sale.  Any purchase order pursuant to this quotation shall not result in a contract for the parts described herein until it is accepted and acknowledged in writing by Seller at it’s manufacturing headquarters in Erie, Pennsylvania, and then only subject to and contingent upon credit approval.

 

2.        SHIPMENT.  Dates of shipment mentioned herein are estimated and not guaranteed.

 

3.        CHANGES.  All changes must be made in writing and acknowledged by Lakeview Forge Company or Erie Tool Works Division to be effective.

 

4.        RETURNS.  No Material may be returned without prior written approval.

 

5.        SHIPPING TOLERANCES.  Lakeview Forge Company and Erie Tool Works reserve the right to ship plus or minus 5% on all non-stock items.

 

6.        DELAY BY PURCHASER.  If shipments of parts are delayed by the Purchaser, date of completion of the parts shall be considered as the date of shipment insofar as payments are concerned.

 

7.        EXCUSABLE DELAYS.  Orders are accepted subject to delays occasioned by acts of God, accidents, strikes or other labor disturbances, flood, fires, war, riot, delays in transportation, acts of civil or military authority, governmental priorities or other causes beyond the control of the Seller.

 

8.        TAXES.  In addition to the prices herein stated, Purchaser agrees to pay or to reimburse Seller, at Purchaser’s option, for any and all sales, use, excise, value added or other taxes or charges which may be imposed by any public authority as a result of the sale, manufacture, transportation or delivery of the parts covered by this Quotation.

 

9.        PAYMENTS.  Payments are to be made in New York funds or their equivalent.

 

10.     BASIS OF PRICES.  Prices are only for the quantities indicated for production and shipment in one lot or as near thereto as Seller’s production makes possible.  Prices are for forgings having only the additions of material for machine finishes which are specified by the Purchaser for the purpose of obtaining this acknowledgment.

 

11.     PREPARATION CHARGES.  Preparation charges are those required for the initial production of the forgings.  The payment of such charges does not convey any title or right of possession to Purchaser.  These charges are based on the initial quantity, rate of delivery, and particular design specified in this Quotation.  The charges for any change either in the rate of delivery or in design will be quoted by Seller upon request.  If any special tools are required in production of the forgings they will be reserved by the Seller exclusively for use in connection with orders received from the Purchaser and will be maintained by the Seller for that purpose until two years shall have elapsed without the receipt of a similar order from Purchaser requiring their use.

 

12.     SURFACES AND TOLERANCES.  Unless otherwise specified in this Quotation, forgings will be furnished with a natural drop-forging surface without machine work and within the tolerances for quantity, size and shape as specified in “Standard Practices and Tolerances for Impression Die Forgings” as adopted by the Drop Forging Association, February 11, 1937.  A copy of these tolerances will be furnished to the Purchaser without charge upon application to the seller.

 

13.     PATENT INFRINGEMENT.  Purchaser assumes all liability for and agrees to indemnify Seller and holds the Seller harmless against any claim for infringement of any patent right asserted because of the nature, structure or use of any product ordered by Purchaser and Purchaser shall reimburse Seller for any and all damages, costs and expenses, including reasonable attorney’s fees, resulting from any such claim.

 

14.     DEFECTS AND CLAIMS.  Defective material will be replaced or credited, whichever Seller elects, unless thereby deliveries shall aggregate less than the amount permitted by under-run tolerances, in which event replacements will be made if Seller or the Purchaser so elects.

 

15.     Seller will not be responsible for any claim for defective material, shortages or damages unless                            such claim is filed in writing with the Seller within sixty (60) days after the date of shipment of the material involved.  For defective parts the measure of damages shall not exceed the quoted price thereof.

 

THE FORGOING IS IN LIEU OFF ALL OTHER WARRANTIES, WHETHER WRITTEN, ORAL OR INPLIED.  NO WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE SHALL APPLY.

 

16.     LIMITATIONS OF LIABILITY AND INDEMNITIES.  In no event, whether as a result of  breach of contract, warranty or tort (including negligence and strict liability), shall Seller be liable for any consequential or incidental damages including, but not limited to, loss of profit or revenues, loss of use of the forgings or any associated material.  Purchaser’s products, damage to associated equipment, cost of capital, cost of substitute products, facilities, service or replacement power, down time costs or claims of Purchaser’s customers for such damages.  Purchaser hereby agrees to indemnify Seller and to hold Seller harmless from any all liability, claims, demands, actions, suits or expenses or costs, including reasonable attorneys fees, whatsoever for such consequential or incidental damages or by reason or growing out of personal injuries to Purchaser or it’s employees or property damage suffered by Purchaser or its employees, whether the same results from breach of contract, warranty or tort (including negligence and strict liability) of Seller’s employees or otherwise, it being the intention of this provision to absolve and protect Seller from any and all such loss.

 

17.     ARBITRATION.  Any controversy or claim arising out of or relating to this contract or breach thereof which is not settled by mutual agreement between the Seller and the Purchaser shall be submitted to arbitration and settled in accordance with the rules of the American Arbitration Association as provided in the United States Arbitration Act.

 

18.     CLERICAL ERRORS.  Clerical and stenographic errors are subject to correction.

 

19.     CHOICE OF LAW.  The validity, performance and all matters relating to the interpretation and effect of this quotation and any purchase order or contract resulting there from and any amendment to the same shall be governed by the laws of the Commonwealth of Pennsylvania, U.S.A.

 

20.     SEPARABILITY.  If any terms and conditions set forth in this quotation is declared null and void by any court of competent jurisdiction, the remaining terms and conditions shall nevertheless remain applicable.