1. Quotation Approvals and Validity

  • Price Fluctuation: Due to the link between raw materials and global stock markets (such as metals, plastics, etc.), all quotations issued by the factory are valid for [e.g., 48 hours or 7 days] only from the date of issue, unless the written quotation explicitly states otherwise.
  • Final Binding: A quotation is not considered binding on the factory until the customer signs the Purchase Order (PO), pays the agreed advance payment, and the factory confirms the order acceptance in writing.

2. Financial Terms and Payment Methods

  • Payment Mechanism: The payment method is agreed upon in the proforma invoice or supply order. The standard practice is a [50%] advance payment upon contracting, and the remaining [50%] before shipping the goods from the factory premises.
  • Late Payment: In the event of a delay by the customer in paying the due installments on time, the factory has the right to suspend production or withhold shipments, and the factory shall not bear any responsibility for the resulting delay in supply.

3. Production and Order Modifications

  • Technical Specifications: The factory relies in its production on the approved technical specifications and engineering drawings signed by the customer. The customer bears full responsibility for any error in the specifications provided to the factory.
  • Order Modification: The customer has no right to make any modifications to the quantities or specifications after the actual start of the production process. If the customer insists on the modification, they shall bear the additional costs resulting from wasted materials and lost operating time.

4. Shipping, Delivery, and Transfer of Risk

  • Place of Delivery: Unless the agreement states otherwise, goods are delivered on an Ex-Works (EXW) factory premises basis.
  • Responsibility of Transport: The factory’s responsibility ends, and the risks of loss or damage are transferred to the customer as soon as the goods are loaded onto the customer’s transport vehicles or the shipping company authorized by them.
  • Delayed Receipt: If the goods are ready for delivery and the customer requests a postponement of shipping, the factory has the right to charge floor and storage fees at a rate of [1%] of the goods’ value for each week of delay, starting 7 days after the notification of readiness.

5. Inspection, Acceptance, and Returns

  • Inspection Period: The customer is obliged to inspect the goods immediately upon receipt. Any objection or complaint regarding shortages or visible defects must be submitted in writing within [48 hours] from the receipt date; otherwise, the customer’s right to claim is waived.
  • Return Policy:
    • Special Products: Goods that have been manufactured to special specifications or specific measurements based on the customer’s request are strictly non-returnable and non-exchangeable, unless a fundamental manufacturing defect is proven.
    • Standard Products: Standard products available in stock may be subject to exchange within [7 days], provided they are in their original condition and intact packaging, and the customer bears the additional shipping costs.

6. Warranty and Limitation of Liability

  • Warranty Limits: The factory guarantees that the products are free from manufacturing and raw material defects in accordance with the approved standard specifications.
  • Exceptions: The warranty does not cover defects resulting from: poor storage by the customer, misuse that is non-compliant with technical specifications, accidents, or modifications made to the product by third parties.
  • Compensation: The factory’s liability in the event of an approved manufacturing defect is limited to (repairing the product, replacing it, or refunding its value) at the technical discretion of the factory. The factory does not bear any consequential damages or lost profits incurred by the customer.

7. Force Majeure

  • The factory shall not be held liable for any delay or failure in performing its obligations if it is due to causes beyond its reasonable control (Force Majeure). This includes, but is not limited to: wars, natural disasters, labor disturbances, public power outages, shortage or import ban of raw materials, or government trade-restricting decisions.

8. Intellectual Property and Confidentiality

  • All engineering drawings, molds, designs, and patents of the factory remain its exclusive and absolute property, and the customer has no right to copy them or use them to produce products with other parties.
  • Both parties are committed to maintaining the confidentiality of the commercial, financial, and technical information exchanged between them and not disclosing it to any third party.

9. Termination of Contract The factory has the right to terminate the contract or cancel the supply order immediately and without the need for a judicial notice in the following cases:

  • Bankruptcy or liquidation of the customer.
  • The customer’s default in payment and delay from the specified dates for more than 15 days.
  • The customer breaches any material clause of this agreement.

10. Applicable Law and Dispute Resolution

  • These terms and conditions are governed by and construed in accordance with the applicable laws of the Arab Republic of Egypt.
  • In the event of any dispute arising regarding the interpretation or implementation of these conditions, it shall be sought to be resolved amicably within 30 days. If this is not possible, the exclusive jurisdiction shall belong to the courts located in the district of Qalyubia Governorate.

Reference Site: Taqa for Cable Production Terms and Conditions – Taqa Cables