This article continues to discuss Legal Issues in Contracts for Sale of Large-sized Complete Set Equipment. The first part of this article was published on Chinalawinsight on October 2011.
II. Delivery and Acceptance
Because large-sized complete set equipment are often composed of multiple parts, it is customary for the manufacturing and delivery of equipment to occur in conjunction with the assembly sequence. Accordingly, there are multiple deliveries, installations and inspections during the contract performance. The general procedures are as follows:
The first inspection of the equipment is usually an open-package joint inspection conducted by both parties upon the arrival of the equipment at the destination port. If the package appears intact, yet after inspection the equipment is found damaged, defective, short of quantity or not conforming to the quality standards and specifications, the buyer is entitled to request the seller to repair, replace, or supplement the parts in question or to claim compensation. If problems are found to arise from the transportation, the buyer’s claim should be made against the carrier or insurance company. As an extra precaution, the buyer sometimes dispatches staff to do a preliminary inspection at the seller’s factory or at the departure port before loading of the equipment.