General Terms and Conditions of
faytech Tech. Co., Ltd.

1. General

The General Terms and Conditions herein shall be agreed and adhered to for the entirety of the business relationship between the contract partner and faytech. These General Terms and Conditions shall apply exclusively to all matters pertaining to the business relationship between faytech and the customer. These General Terms and Conditions shall govern and be binding on the contract partner and take precedence and supercede any contracts, agreements, or terms and conditions that are not authored or expressly agreed to by faytech.

2. Definition of a Concluded Contract

2.1 Any offers by faytech are not binding unless they are expressly designated as binding. They are particularly subject to faytech being supplied, to stocks and prior sale.

2.1.1 A binding contract will be entered into and exist between faytech and the contracted party through the provision of written confirmation of an order or by delivery of goods provided to fulfill an order. Written form such as, but not limited to, e-mail, fax and suchlike shall be sufficient to meet the requirement of a written agreement and will thus be binding in effect.

2.1.2 In relation to non-merchants, a written confirmation of an order together with the General Terms and Conditions shall be considered to constitute a new and binding offering from faytech and if there is no response within seven days, acceptance of the goods shall be considered to be confirmation of the intent to accept said offering. Receipt of a declaration of acceptance shall be waived.

2.2 Any errors in telephonic or electronic communication shall be to the detriment of the party that used the communication device (e.g. the caller).

2.3 faytech reserves all rights and shall own all IP contained within quotations, charts, drawings, technical descriptions and explanations that may be provided to the contracted party. These may not be reproduced, reused or disseminated brought to any third party without the prior express written consent of faytech.

2.4 When registering or providing information to faytech, the customer is under a duty to state true particulars. If customer details change, in particular the customer’s name, address, e-mail address, telephone number or bank account details, the customer is under a duty to notify faytech of said change without undue delay. If the customer fails to provide such information, or if the customer gives false details from the outset, faytech reserves the right to rescind the contract or to claim damages. Revocation or cancellation of the agreement shall be declared in writing. Sending an e-mail shall also be sufficient to meet the requirement of writing. The customer must ensure that the e-mail address, which the customer has given, can be reached at the time when it is given, and that the possibility of receiving e-mail messages is not excluded because of message forwarding or because the e-mail account has been closed or is full.

3. Delivery

3.1 The delivery period shall not commence before the documents, approvals and releases that are necessary in order to implement the contract have been provided and not before any agreed down payment by the customer has been received.

3.2 Any unforeseen impediment to delivery (e.g. industrial action or force majeure that should cause faytech to not be supplied on time), for which faytech is not answerable, shall entitle faytech to extend the delivery period by the duration of the disruption up to a maximum of eight weeks.

3.3 In addition faytech reserves the right to rescind if – despite having concluded a congruent hedging transaction – faytech is itself not supplied, or is not supplied in time.

4. Reservation of Title

4.1 The goods shall remain the property of faytech until payment has been made in full. The reservation of title extends to the satisfaction of all claims arising out of the business relationship and also applies to any claims that arise in future before title has passed. The reserved goods therefore serve as security for the respective balance from time to time. The customer assigns their claims arising out of any re-sale, including value added tax, as well as the consideration for the rights and claims that serve as security for the re-sale, to faytech in advance. In the event of any re-sale with the customer’s own or third-party property the assignment shall be effected only in the amount of faytech’s purchase price claim.

4.2 The customer is authorized to re-sell in the ordinary course of business. The customer may neither pledge the item delivered nor transfer ownership thereof by way of security. faytech must be notified before delivery of any rights of third parties that may affect the reserved goods.

4.3 Any further processing of delivered goods shall, as far as faytech is concerned, be performed as a refiner without any liabilities thereby accruing to faytech. In particular, this provision does not constitute a mandate. The reservation of title shall continue in the converted a rticle to the extent described (extended and prolonged).

4.4 The customer shall remain entitled to assert debts arising out of re-sale against third parties in his own name. This authorization to collect debts shall lapse when the customer is in default.

4.5 The customer must notify any access by third parties to the reserved goods, including assigned claims, to faytech immediately and without any undue delay. Damage arising out of any breach of this duty to notify, e.g. because of a belated filing or failure to file a third-party action against enforcement, shall be borne by the customer.

4.6 faytech undertakes to release the security as soon as the realisable value thereof exceeds the outstanding debts owed to faytech by more than 10 %.

5. Price

5.1 In dealings with non-merchants faytech shall charge the agreed price provided that the delivery date is not more than four months after placement of the order.

5.2 In dealings with merchants faytech shall charge the latest list price. The same shall apply in dealings with non-merchants if the delivery date is more than four months after placement of the order. If there is no list price, the price used in advertisements at that time shall apply (cf. Clause 5.3).

5.3 In cases which fall under Clause 5.2, faytech’s contract partners, who are not merchants, shall have a right to cancel an order if they prove that the average market price on the day of delivery is exceeded by more than 20 %.

5.4 Price agreements with non-merchants include value added tax; price agreements with merchants do not include value added tax. All prices apply ex warehouse and do not include packaging, carriage or insurance.

5.5 Prices are in USD unless otherwise stated. In foreign transactions the currency is the currency that was the subject of the contract negotiations.

6. Payment

6.1 Invoices are due immediately upon receipt of goods.

6.1.1 They must be paid by bank transfer.

6.1.2 A sum credited in a bank transfer or direct debit processes does not mean that payment has been made. Rather, payment is effected only once the credited amount has become final and irrevocable on faytech’s accounts. Until then the retention of title (Clause 4) shall continue to be fully in effect. This shall also apply to payments made by bill of exchange or cheque.

6.2 Deductions are not permitted unless they have been expressly agreed to by faytech. It is agreed that any trade practice to the contrary shall not apply. Counterclaims may be offset only if the claim is undisputed.

6.3 Payments received shall be appropriated first to all due claims in the order in which they arose. The contract partner’s right to make unilateral stipulations regarding satisfaction, is excluded for the entire contractual relationship.

6.4 If a claim under Clauses 6.1 and 6.3 is still outstanding five days after the occurrence of default, faytech shall charge default interest in the amount of eight percentage points above the base interest rate.

6.5 Default occurs when a dunning notice is given, however, no later than the 30th day after the due date and receipt of an invoice or equivalent payment demand has been made.

6.6 Notwithstanding Clause 6.4, faytech may prove that the loss caused by a default is greater and the contract partner may be able to prove that the loss caused by default is lower.

6.7 All claims by faytech shall become due altogether and any deferment of payment granted shall end if one of the following cases occurs: The customer is in default with performance of an obligation, if it becomes known that a bill of exchange or cheque is protested (irrespective of whether this is against third parties), the customer stops making his payments, is over indebted or insolvency proceedings over his assets are opened or the opening of such proceedings is denied because of a lack of assets.

6.8 In cases that fall under Clause 6.7 faytech shall have the option between rescission, damages, a right to payment in advance or the provision of appropriate security. Unless otherwise agreed in an individual arrangement, only a bank guarantee will be considered appropriate security.

7. The Bearing of Risk

7.1 Irrespective of the place of performance, the statutory rules governing sales by delivery to a place other than the place of performance (at the request of the customer) shall always apply to deliveries by faytech. The contract partner shall bear the risk with effect from handover to an appropriate carrier. Any agreement on carriage-paid delivery in the individual case shall not change this.

7.2 Returns are carried at the customer’s risk, unless the customer is exercising a statutory warranty right due to defects.

8. Warranty for Defects

8.1 The limitation period for the statutory warranty for defects in quality or workmanship is limited by faytech to a period of 2 to 5 years, depending on your purchase.

8.1.1 Windows licenses and DCDCs installed are excluded from return in any form.

8.2 Deliveries must be inspected immediately upon receipt. Any manifest defects must be reported without undue delay. In the event of any failure to meet this obligation the warranty for it is excluded.

8.2.1 Damage to the packaging or to the goods delivered must be reported to and confirmed by the carrier. In addition the damage must be reported to faytech. Damage that is not immediately manifest must be reported without undue delay after discovery.

8.2.2 faytech must be notified without undue delay after discovery in the event of any failure to deliver, belated delivery, wrong delivery, delivery of too much or too little, or defective delivery. Reference is made to the duty to inspect.

8.2.3 For non-merchants the following shall apply in lieu of the provisions in Clauses 8.2.1 – 8.2.2: Damage in transit must be reported as described. For all other damage the following applies: Any manifest defects must be reported within seven days. Any hidden defects must be reported within the statutory warranty periods.

8.3 If the purchased goods are defective, faytech shall have a right of subsequent performance, by either, repair or remedying of the defect or by delivering goods that are free from defects. faytech can refuse subsequent performance if it involves excessively high costs. Any repair shall be made at faytech’s place of business. Any on site service in deviation from this provision shall only be carried out on the basis of a separate agreement.

8.4 Any goods intended to be returned must be properly packed. Damage in transit caused because of improper packaging shall be borne by the customer. Only the original packaging shall be deemed to be proper packaging. faytech shall fulfill its obligation to take back packaging even after expiry of the statutory warranty periods.

8.5 After repair has failed twice or if faytech refuses subsequent performance, the customer can rescind the contract or can reduce the purchase price by declaration to faytech (price reduction). There shall be no right to damages. By contrast, in the case of mainframe installations the agreed upon test run time shall be the decisive determinant for warranty period validity. faytech’s right to repair shall only lapse after the expiry thereof.

9. Duty to Take Back and Dispose of Goods

9.1 Disposal after Useful Life

faytech is exempted by the customer from to take back goods pursuant to any statutory laws or obligations relating to the disposal of products after their useful life has ended. This also applies to associated claims by third parties. When use of the delivered goods has finished, the customer must dispose of them at his own cost in accordance with the statutory provisions.

9.2 Regulation with regard to Drop Shipments

If the customer passes goods delivered by faytech on to commercial third parties, it is the customer’s duty to oblige said third party to properly dispose of the goods in accordance with any statutory obligations and be liable for any charges or costs incurred thereof. If the goods are passed on again to another party a corresponding duty must then also be imparted onto the buyer. In the event that third parties, to whom goods have been delivered by faytech or those that have been passed on, faytech will not be obliged or liable to contractually assume the disposal obligation or to pass said obligation on due to an omission on the part of the customer. The customer shall be under the obligation to take back and properly dispose of the goods delivered by faytech when they are no longer used and to do so at his cost and in accordance with statutory provisions. The customer is under a duty to document the proper transference of this obligation. He must be able to prove this transference to faytech at any time.

9.3 Suspension of the Limitation Period

faytech’s right to be indemnified by the customer shall last for the first two years after use of the equipment has ceased. The two-year suspension of the limitation period shall start to run upon receipt by faytech of a written notification by the customer that use of the equipment has ceased.

10. Limited Liability

10.1 faytech shall only be liable for provable gross negligence. This also applies to liability for staff, agents and third parties used or employed by faytech.

10.2 Liability for ordinary negligence and, to the extent permitted by statute, for intermediate negligence is excluded. This also applies to liability for staff, agents and third parties used or employed by faytech.

10.3 The liability of faytech’s staff is limited in accordance with Clauses 10.1 – 10.2.

10.4 The above limitation of liability under Clause 10.1 – 10.3 applies to compensation for damage caused by a defect or to consequential damage caused by a defect, irrespective of the pre-contractual, contractual or non-contractual basis of the claim, provided that the contract partner’s body, life or health was not affected or the breach is not a breach of a material contractual obligations.

11. Exclusion of Liability

Any failure to receive a consignment must be reported to faytech within two weeks following issue of the invoice or knowledge of the dispatch. Any failure to so notify faytech shall exclude faytech from any liability whatsoever.

12. Export Transactions

12.1 Legal notice: Goods delivered by faytech may be subject to local or international export controls and embargos. Any export and import, re-export or re-import to third countries is only permitted with the consent of the competent authorities and is the sole responsibility of the contract partner.

12.2 It is up to the contract partner to check and be aware of any issues related to Clause 12.1 on a case by case basis and at their own risk and peril.

12.3 Likewise, it is up to the contract partner to advise their customers of any potential issues or risk associated with Clause 12.1 and to use their influence to ensure that any existing obligations are met and fulfilled by either themselves or their customer.

13. Place of Performance

The place of performance shall be faytech’s registered office.

14. Place of Jurisdiction

14.1 The place of jurisdiction shall be faytech’s registered shall be the People’s Republic of China.

14.2 The provision applies to contractual relations with merchants, public-sector legal entities and public-sector special funds or bodies. For non-merchants the statutory rules shall continue to apply.

15. Applicable Law

The laws and provisions of the People’s Republic of China shall apply in all matters.

16. Written Form

Any amendments and additions (individual agreements) must be made in writing.

17. Scope of Application

These General Terms and Conditions apply to any and all contracted parties unless otherwise stipulated in writing.

18. Valid Date

From : 27th Mar, 2018.