General Terms and Conditions of Sale, Delivery and Payment

A. General requirements

I. Validity

All offers, sales, deliveries and services of HAZET-WERK Hermann Zerver GmbH & Co. KG (hereinafter referred to as “HAZET”) are based exclusively on the following General Terms and Conditions (hereinafter referred to as “Terms and Conditions”). Conflicting terms and conditions of the Purchaser pursuant to §§ 305 ff. of the German Civil Code ("BGB"), in particular purchasing conditions of the Purchaser do not apply on any account, nor also if HAZET does not contradict them after receipt.
The following Terms and Conditions are an integral part of all contracts concluded with HAZET’s contractual partners for its deliveries and services. Agreement is given to the Terms and Conditions when the order is placed or the delivery accepted. The Terms and Conditions do not apply to relations with consumers in the sense of Section 13, BGB.
Modifications and/or supplements to these Terms and Conditions are only valid if written agreement there to has been given. The written form pursuant to these Terms and Conditions also comprises the text form.
“Purchaser” refers to the contractual partner, irrespective of the nature of the contract.
To the extent that nothing else is agreed in these Terms and Conditions, the determining factor for the interpretation of the various terms of delivery is the INCOTERMS® 2020.

II. Offers and Conclusion of Contracts

HAZET offers are subject to confirmation and without obligation. Requests can be accepted by HAZET within thirty (30) days. The Purchaser is thus bound to its request for at least this period. A request is deemed as accepted when HAZET has confirmed it in writing to the Purchaser. The delivery and invoice are both deemed as confirmation of an order.
HAZET reserves the right to ownership and the copyright to the documentation pertaining to the offer (illustrations, drawings, descriptions and the like); third parties may only obtain access to the documentation if it is intended to be circulated. Otherwise it should be returned to HAZET upon request.
The information, drawings, illustrations, technical data, weights, measurements and descriptions of services included in brochures, catalogues, circulars, advertisements, price lists or in the documentation pertaining to the offer are only intended to convey a general idea of the products described. They do not include any explanations, other assurances or guarantees and shall not become an integral part of the contract. Common practice deviations, or modifications which are made due to legal regulations or as technical improvements, are permitted insofar as they do not adversely affect the contractually intended use.

III. Prices

Prices are net cash plus VAT of the respective statutory amount as well as freight ex works or warehouse and do not include outer packaging, postage and insurance.
If the Purchaser’s value of consignment exceeds a net value of EURO 750, i.e. excluding VAT, then delivery shall be made with carriage paid to the Purchaser’s address within Germany and without charge for standard packaging. This applies exclusively to deliveries to the Purchaser's address. For different delivery addresses, the prices listed under Point III shall apply. 1.

IV. Payment Conditions

Unless otherwise agreed in writing or indicated on the invoice, the invoices are due for full payment in euros immediately irrespective of any delays in delivery for which HAZET is responsible. An agreed discount always refers only to the invoice value excluding freight. Unless otherwise agreed, discount periods begin from the invoice date.
The receipt by HAZET shall determine the timeliness of payment.
As long as purchase price receivables based on older invoices which are due for payment are still unsettled, it is not permitted to make a cash discount deduction in any case.
If special agreements are the basis, HAZET shall only accept as fulfillment cheques and bills of exchange which are re-discountable with the Bundesbank (German Central Bank).
Bills of exchange or cheques shall be credited subject to receipt with the value of the date – and only apply as payment on the day – when HAZET can ultimately dispose over the proceeds. The Purchaser shall bear all costs and disbursements which result from this.
If the Purchaser falls into payment arrears, the Purchaser shall pay interest on the respective claim at a rate of 9 percentage points above the basic interest rate pursuant to § 247 BGB. The right to assert further claims due to the delay remains unaffected.
If it becomes discernible after conclusion of the contract that the payment claim by HAZET is jeopardised by inadequate performance on the part of the Purchaser or if other circumstances occur, which are indicative of a significant deterioration in his performance, HAZET can refuse agreed advance performances as well as exercise the rights from § 321 BGB. This also applies insofar as HAZET's duty of performance is not yet due. In such cases, HAZET can furthermore call in claims from the current business relationship with the Purchaser. Inadequate performance on the part of the Purchaser is also deemed to be case if the Purchaser is at least three weeks in payment arrears with a considerable amount, furthermore a considerable downgrading of the limit available to him for HAZET's goods credit insurance.
The retention of payments or offsetting with the Purchaser’s counterclaims is only permitted if the counterclaims are undisputed or have become legally binding, or they would entitle the Purchaser to refuse his performance pursuant to § 320 BGB.
Claims against HAZET are only assignable with HAZET's written consent.

V. Securities / Retention of Title

The ownership of the delivered goods ("reserved property" in this section A. V.) is transferred under the condition precedent of full payment of the purchase price. Furthermore, HAZET shall retain ownership of all delivered goods until the fulfillment of all claims by HAZET, in particular also the respective outstanding balance claims, which are due to HAZET as part of the business relationship (balance reservation). This also applies if the payments are made for specifically designated receivables. The balance reservation shall expire finally with the settlement of all claims still outstanding and covered by this balance reservation at the time of payment. In case of prepayment transactions or cash transactions pursuant to § 142 Insolvency Ordinance, only the simple retention of title according to A. V. 1. clause 1 shall apply, the extension and prolongation forms of the retention of title shall not then apply.
The Purchaser may only sell reserved property during the course of normal business and as long as he is not behind with the payment of outstanding receivables towards HAZET. The Purchaser herewith assigns in advance to HAZET all receivables against third parties arising from such sales in the amount of the respective invoice value for the resold reserved property, including the statutory VAT. HAZET shall accept this assignment. The same applies for other claims, which occur at the point of the reserved property or otherwise result in respect to the reserved property, for instance insurance claims or claims from illicit action upon loss or destruction.
If the Purchaser sells the reserved property together with other objects not delivered by HAZET, the assignment of the receivables from the sale shall apply only in the amount of the invoiced value of the reserved property, which value is stated in the HAZET invoices. In case of processing, combination and mixing the reserved property with other goods by the Purchaser, HAZET is entitled to co-ownership of this in the proportion of the invoice value of the reserved property to the invoice value of the other goods used. If HAZET's ownership is terminated by combination or mixing, The Purchaser shall already assign to HAZET the ownership rights to which he is entitled to the new inventory or the item in the scope of the invoice value of the reserved property and store it free of charge for HAZET. The co-ownership rights apply as reserved property.
The Purchaser is entitled to collect the receivables from the sale to third parties.
HAZET is entitled to revoke the authorisation to collect receivables given in A. V. 4 if the Purchaser defaults on its payments, as well as in the event of a significant decline in the Purchaser's financial situation pursuant to A. IV. 7. Such a revocation also terminates the authorisation to collect with the placement of a request for insolvency proceedings or with the assignment of security measures in an insolvency proceeding. Upon request the Purchaser must inform HAZET of the assigned receivables and their debtors, and provide the documentation necessary for the collection of the receivables. Upon special request by HAZET the Purchaser shall inform the affected third-party debtors of the assignments having taken place.
As far as the Purchaser becomes entitled to claims against insurance companies or other third parties due to the reserved property deteriorating or becoming damaged, lost or destroyed or for other reasons, these claims shall also be assigned instead of the sales proceeds to HAZET in advance and to the same extent together with all ancillary rights.
Rights arising from the reservation of title and from all the special forms stipulated in these conditions are also deemed until the title is transferred in full as contingent liabilities which HAZET has accepted in the Purchaser’s interest.
The Purchaser may not make or allow dispositions regarding the reserved property that do not correspond to the above conditions.
The Purchaser must inform HAZET in writing and without undue delay of seizures and other risks to HAZET’s rights, which risks arise from third parties, and give information necessary for legal action to be brought by a third party claiming title to the seized property in accordance with §771, Code of Civil Procedure (Zivilprozessordnung – ZPO). The Purchaser shall be liable if HAZET suffers a loss because a third party cannot pay the legal and out-of-court costs of legal action which it must reimburse to HAZET pursuant to § 771, ZPO.
HAZET is entitled, at the Purchaser’s expense, to insure the reserved property against fire, water and theft unless the Purchaser can demonstrate that it has taken out such insurance itself.
If the value of the security, including offset possibilities, exceeds the secured receivables by more than 20 % for an extended period of time, HAZET is obliged upon the Purchaser’s request to release securities of HAZET’s choice.

VI. Return of Goods

Insofar as HAZET is not obliged to take back goods, HAZET shall only take back goods insofar as the goods are current, in their original packaging and re-sellable and insofar as HAZET has consented to the take-back in writing beforehand. These must be returned free of charge.
A credit note for goods returned pursuant to A. VI. 1. is made with 80 % of the calculated price. Costs for any reprocessing or new packaging shall be deducted additionally. The credit note can only be credited with new deliveries of goods. As a general principle, returns of insulated tools cannot be accepted for safety reasons.

B. Deliveries, Warranty, Liability

I. Delivery Periods, Delivery Dates

Periods and deadlines set by HAZET for deliveries and performances always apply only approximately, unless a fixed period or a fixed deadline is expressly assured or agreed.
The delivery periods commence with the receipt of the order confirmation, but not before all the details of the order have been completely clarified and any necessary national and international official certificates have been obtained. The delivery periods and dates refer to the time of shipment, i.e. dispatch ex works or warehouse. These are also deemed to have been observed with the notification that the goods are ready to be dispatched, even if, through no fault of HAZET's, they cannot be dispatched on time.
Without influencing HAZET’s rights arising from the Purchaser’s default, the agreed delivery period is extended by the time during which the Purchaser defaults on its obligations arising from this or other business plus an appropriate start-up period.
Partial deliveries are permitted as far as the Purchaser can be reasonably expected to accept them. Each partial delivery is considered an independent business transaction.
HAZET is entitled to withhold outstanding deliveries if the Purchaser does not fulfil its payment obligations or if there is reasonable concern that it cannot fulfil such an obligation (right of retention). HAZET reserves the right in any case to make deliveries in return for advance payment or cash on delivery.
HAZET's delivery obligation is always subject to the reservation of correct, timely and contractual self-delivery, unless the incorrect or delayed self-delivery is the fault of HAZET.
If HAZET is in delay with a delivery or other performance, the Purchaser can demand replacement of the delay damage besides the performance; but in case of minor negligence limited to maximum 10 % of the agreed price for the delayed delivery or performance. The right of the Purchaser to damage compensation in lieu of performance pursuant to B. VII. 1. and B. VII. 2. remains unaffected.

II. Special Conditions for Goods on Recall

For business with continuous deliveries HAZET must receive release orders and type categories for roughly the same amount per month. If the release orders or type categories are not given on time, HAZET is entitled, after the deadline has expired without any result, to categorise and deliver the goods itself, or to rescind from the outstanding part of the transaction and demand compensation instead of payment.

III. Force Majeure and Other Delivery Conditions

Force majeure events, such as strike, lockout, mobilization, war, blockade, pandemic or epidemic, export and import bans, raw material and fuel shortages, fire and other circumstances which are not the fault of HAZET and which significantly impede the delivery or performance by HAZET, shall entitle HAZET to postpone the delivery for the duration of the obstacle and an appropriate start-up time. This applies irrespective of whether the above-mentioned circumstances occur at HAZET, the preliminary supplier or one of the subcontractors.
The Purchaser can demand an explanation from HAZET as to whether delivery will take place within an appropriate period or whether a rescission from the contract should be considered. If HAZET does not make a declaration within an appropriate deadline, the Purchaser can itself rescind from the as yet unfulfilled part of the delivery.
The declaration made by the preliminary supplier or the sub-contractor to HAZET regarding circumstances which have occurred at their premises pursuant to B.III. 1. are deemed as sufficient proof that HAZET is not responsible for the hindrance of the delivery.

IV. Dispatch and Passing of Risk

The forwarding agent or freight carrier shall be determined by HAZET. In the absence of any special agreement, the choice of route and means of transport is entrusted to HAZET, excluding any liability.
Release orders must be given without undue delay for goods which have been notified as ready for dispatch on the agreed date. HAZET is otherwise entitled to store them as it sees fit at the Purchaser’s expense and risk, and invoice them as delivered ex works or warehouse. The means of transport must be unloaded immediately if the delivery is made with carriage paid. The costs for any periods of delay shall always be borne by the Purchaser.
Unless otherwise agreed, the delivery shall be made "ex works". The risk shall in any case – including a confiscation – pass to the Purchaser when the goods are handed over to the forwarding agent or freight carrier or at the latest when the goods leave the plant or warehouse – e.g. even if the delivery is made with carriage paid.
Premature deliveries which the Purchaser can be reasonably expected to accept, and excess or short deliveries, which are customary in the trade, are permitted.
The requested amount may be fallen short of or exceeded by up to 10 % for custom-made products. Also considered as custom-made products are mass-produced articles which the Purchaser explicitly wishes to have a special designation. The Purchaser is not entitled to a right of withdrawal. The goods cannot be returned to HAZET.

V. Defects and Warranty

If the delivered goods exhibit a material defect, HAZET is first entitled to reworking or replacement delivery with a reasonable period as chosen by HAZET.
The buyer shall examine the received goods immediately after delivery. Claims for defects only arise if defects are complained about immediately, but no later than in 7 days in text form; concealed defects must be notified in text form immediately after their discovery. Furthermore, the Purchaser shall immediately notify the responsible shipping agent, transport/freight company or post office, as well as HAZET, of any transport damage and obvious defects.
If an acceptance of the goods or an initial sample inspection has been agreed, the buyer is obliged to immediate acceptance or initial sample inspection. An initial sample inspection does not exonerate the buyer from an incoming goods inspection of the series parts. Complaint about defects, which the Purchaser could have discerned upon immediate initial sample inspection, is excluded from the delivery of series parts.
HAZET shall be given the opportunity to determine the defects receiving complaint. Goods that have received complaint shall be sent back to HAZET immediately on demand; HAZET shall assume the transport costs if the defect complaint is justified. If the Purchaser does not fulfil these obligations or makes changes to goods that have already received complaint without the consent of HAZET, he shall lose any material defect claims.
HAZET has equally little responsibility for defects, which arise due to unsuitable or improper use, defective assembly or commissioning by the Purchaser or third parties, normal wear, erroneous or negligent handling, as for the consequences of improper changes or repair work performed by the Purchaser or third parties without HAZET's consent.
Statutory recourse claims by the Purchaser against HAZET only exist as far as the Purchaser has not come to any understanding with its customer which exceeds the statutory claims due to liability for defects.
The reimbursement pursuant to B.V.6. above is limited to the cost price (e.g. transport and material costs) incurred by the Purchaser, but not its profit margin towards the Customer.
Further claims by the Purchaser due to material defects, which are asserted against HAZET and its vicarious agents, are excluded subject to the regulation in B.VI. of these Terms and Conditions.
HAZET vouches that the goods supplied by HAZET are free of commercial property rights and/or copyrights of third parties. HAZET is obliged to exonerate the Purchaser from claims within the framework of the statutory regulations, which third parties assert on account of the violation of commercial property rights and/or copyrights to which they are entitled in the Federal Republic of Germany. A precondition for the exoneration is that the claims of third parties have either been recognised by HAZET or determined judicially with legal effect.
The Purchaser shall enable HAZET to participate at its own expense in the legal defence against such claims of third parties, in particular by what is referred to as a third-party intervention in the sense of civil procedure. The Purchaser shall support HAZET in the preparation and execution of the legal defence or settlement negotiation to a reasonable extent. HAZET shall reimburse the Purchaser all necessary expenses in conjunction with the legal defence against this utilisation, whereby legal fees are reimbursed on the basis of the Law on the Remuneration of Lawyers ("RVG").
A precondition for the above claims of the Purchaser against HAZET is that
a) the Purchaser informs HAZET immediately in writing, if in relation to the delivered goods claims are asserted on account of the violation of property rights and/or copyrights of third parties against the Purchaser,
b) the Purchaser grants HAZET control over the legal defence and acts within the framework of the legal defence and/or in case of settlement disputes only and always in agreement with HAZET and
c) the claimed legal violation is only to be attributed to the goods supplied by HAZET without combination or use with other products.

VI. Guarantee

Irrespective of the material defect claims to which the Purchaser might be entitled according to B. V., HAZET grants a full guarantee on all tools in case of material and production faults. All adapters are excluded from the full guarantee. The full guarantee on sockets for impact operation is limited to material defects and/or faulty workmanship. The guarantee does not cover the tools or consumables for normal wear and/or tear damage. The full guarantee will not be valid for tools which cannot be used any more due to their old age or due to abuse or improper use. The relevant operating instructions and safety instructions for the HAZET tools shall be considered in this context. The general safety instructions as well as the data in the HAZET tool catalogue shall also be considered. An improper use of tools occurs especially in case:
- the normal or specified loading capacity of the tool (for instance when using a diagonal cutter on a wire that is too hard or, in the case of chisels, centre punches or drift punches that are used on steel that is too hard, or for work that is too heavy) is exceeded.
- tools that already exhibit damage or defects continue to be used.
- screws and nuts are used with the wrong-sized nut-driver.
- modified tools are used.
- nut-drivers designated for manual operation are used on impact wrenches.
- tools (e.g. use of screwdrivers as chisels or pry bars etc.) are improperly used.
In order to make use of the guarantee right, the Purchaser shall send the tool carriage free domicile via specialist trade to HAZET in the event of a material or manufacturing defect. HAZET shall check the tool. If a material or manufacturing defect is present, HAZET shall replace the goods or repair the goods free of charge.

VII. Liability

On account of violation of contractual and non-contractual obligations, in particular on account of impossibility, delay, fault upon contract initiation and unauthorised handling, HAZET shall only be liable on cases of wilful intent and gross negligence. In case of gross negligence, HAZET's liability is limited to the contract-typical damage foreseeable upon conclusion of contract.
The limitations of liability from B. VII. 1. do not apply in case of culpable violation of essential contractual obligations, insofar as the attainment of the contractual purpose is jeopardised, in case of culpably caused damage to life, body and health and also then if and to the extent that HAZET has assumed the guarantee for the nature of the sold item, as well as in cases of mandatory liability according to the Product Liability Act. Essential contractual obligations are those, which actually enable the proper execution of the contract and upon whose compliance the Purchaser may regularly rely. A reversal of the burden of proof to the Purchaser’s disadvantage is not associated with the above regulations.
Insofar as the liability of HAZET is excluded or limited, this also applies for the personal liability of the employees, workers, personnel, legal representatives and vicarious agents of HAZET.
Insofar as the Purchaser is legally obliged, on account of an error caused by HAZET in the goods produced and supplied by HAZET, to implement a recall action and insofar as HAZET itself would therefore be liable in the external relationship, HAZET shall bear the costs associated with the recall action only to the extent that the measures and costs are reasonable and necessary, no milder equally effective means of risk aversion are available and insofar as these were coordinated with HAZET before any costs are incurred. HAZET's objection to the contributory negligence remains unaffected.
Unless otherwise agreed, contractual claims, which arise for the Purchase against HAZET on the occasion of and in conjunction with the delivery of the goods, shall come under the statute of limitations one year after delivery of the goods. This does not apply, insofar as §§ 438 Para. 1 No. 2, 478, 479 or § 634 a Para. 1 No. 2 of the BGB stipulates longer periods as well as in cases of injury to life, body or health, in case of a deliberate or grossly negligent breach of duty by us or in case of fraudulent concealment of a defect. The limitation period shall not recommence in cases of defective supplementary performance. The statutory regulations concerning the burden of proof remain unaffected.

C. Final Provisions

The place of fulfillment and exclusive court of venue for all disputes directly or indirectly resulting from this contractual relationship is Remscheid.
The legal relationship between HAZET and the Purchaser is exclusively subject to the law of the Federal Republic of Germany excluding the United Nations Convention on Contracts for the International Sale of Goods (CISG) dated April 11, 1980.
If individual regulations of these terms and conditions are or become ineffective, either in full or in part, this shall not affect the effectiveness of the remaining part or the remaining regulations.

Remscheid, September 2020