Common use of Basic Warranty Clause in Contracts

Basic Warranty. 3.1. The period of the Basic Warranty is usually 12 months (but not more than 3,000 oper- ating hours for the air-cooled motor or 5,000 operating hours for the water-cooled mo- tor). The warranty commences on the date the Customer receives the OEM product equipped with the registered engine from the OEM product manufacturer. For the pur- poses of this Agreement, the date of the invoice issued by the OEM product manufac- turer will be used to determine this date for simplicity. The period of the basic warranty shall be reduced by the number of days by which the product date indicated on the type plate has been exceeded by more than 12 months at the time of the commence- ment of the warranty (for example, see above under Clause 2.2.2). 3.2. In the event of defects as to the quality of the engine, Hatz shall, at its option to be made within a reasonable period of time, first be obliged and entitled to remedy the defect or to make a replacement delivery. In the event of failure, i.e. impossibility, un- reasonableness, refusal or unreasonable delay of the repair or replacement delivery, the Customer may claim compensation for the decrease in value of the defective en- gine or the defective component. Additional expenses for the rectification of defects incurred in connection with difficult access to the engine shall be borne by the cus- tomer. 3.3. If a defect is due to the fault of Hatz, the Customer may claim damages. Hatz's liability for damages, irrespective of the legal reason, is limited as follows: 3.3.1. Hatz shall not be liable in case of ordinary negligence of its organs, legal repre- sentatives, employees or other vicarious agents, except in case of a breach of material contractual obligations. Material contractual obligations are the obliga- tion to deliver and install the delivery item free of material defects in a timely manner as well as advisory, protective and custodial obligations which are in- tended to enable the Customer to use the engine in accordance with the contract or which are intended to protect the life and health of the Customer's personnel or to protect the Customer's property from significant damage. 3.3.2. To the extent that Hatz is liable on the merits for damages under the preceding paragraph, such liability shall be limited to damages which Hatz foresaw at the time of the conclusion of the contract as a possible consequence of a breach of the contract or which ▇▇▇▇ should have foreseen by exercising due care. Indirect damage and consequential damage resulting from defects of the engine shall, moreover, only be compensable to the extent that such damage is typically to be expected when the engine is used for its intended purpose. 3.3.3. In the event of liability for ordinary negligence, Hatz's liability to pay compensa- tion for damage to property and further pecuniary loss resulting therefrom shall be limited to an amount of EUR 8,000,000.00 per claim (corresponding to the current coverage amount of its product liability insurance or third party liability insurance), even in the event of a breach of material contractual obligations. 3.3.4. The limitations of this section shall not apply to Hatz's liability for willful miscon- duct, for guaranteed characteristics, for injury to life, body or health or under the Product Liability Act. 3.4. In the event of defects in components of other manufacturers which Hatz cannot rem- edy for licensing or factual reasons, Hatz shall, at its option, assert its warranty claims against the manufacturers and suppliers for the account of the Customer or assign them to the Customer. In the event of such defects, warranty claims against Hatz shall only exist under the other conditions and in accordance with the provisions of this warranty certificate if the legal enforcement of the aforementioned claims against the manufacturer and supplier has been unsuccessful, for example due to insolvency. For the duration of the litigation, the limitation period for the relevant warranty claims of the Customer against Hatz shall be suspended. 3.5. The warranty shall not apply if the defect is due to the following causes: 3.5.1. the Customer modifies the engine or has it modified by a third party without the consent of ▇▇▇▇ (e.g. performance enhancement) and the rectification of defects is thereby rendered impossible or unreasonably difficult; 3.5.2. instructions for the operation of the diesel engine (including maintenance instruc- tions) or fuel and fluid specification are not observed; 3.5.3. natural wear and tear or external influences such as improper handling and stor- age, inadequate corrosion protection, external influences, improper installation; 3.5.4. use under exceptional operating conditions or use other than that agreed or ex- pected.