Common use of Quality and Quantity Inspection Clause in Contracts

Quality and Quantity Inspection. The Buyer may require in its own option a quality inspection pursuant to the provisions below: 5.3.1. Unless agreed otherwise, quality and quantity inspection is to be determined by an Inspector such as SGS or similar internationally recognized inspection company mutually agreed between the Parties and in accordance with the standard practice (i) at the place of the inspection or (ii) of the Inspector if there is no standard practice at the place of inspection, unless the Purchase Order or the PTC provides otherwise. 5.3.2. The quantity Inspection of the Goods shall be as per the quantity in vacuum (unless the Purchase Order explicitly applies measurement in air). The Seller shall be notified of the Inspection at least 3 (three) days in advance and the Buyer shall provide the Seller’s representative opportunity to present in order to observe the Inspection. 5.3.3. The inspection results shall be documented in the Inspector’s Report and shall be conclusive and binding on the Parties for invoicing purposes, for quality purposes and/or for quantity purposes and shall be final and binding for both Parties, except in case of fraud or manifest error. 5.3.4. In the event that (i) the quality of the Goods does not conform the contractual Specification or (ii) the quantity of the Goods does not conform the conditions of the Purchase Order, the Parties shall discuss the Buyer’s remedies for such non-conforming Goods. The remedies may include, for example, a price adjustment for the Goods. The outcome of the Parties’ discussion shall be documented in written. 5.3.5. The costs of the inspection shall be equally shared between the Seller and the Buyer (and the terminal, if the terminal participates in the inspection). 5.3.6. The Inspector shall issue his report to the Seller and the Buyer as soon as practicable. The Inspector shall retain samples taken for at least 90 (ninety) days from the date of inspection.