Common use of Factory Acceptance Test Clause in Contracts

Factory Acceptance Test. 5.2.1. SELLER shall inspect the Equipment to confirm that it meets the Technical Specifications, and shall thereupon send the ex-works quality certificate to BUYER, with notification of the planned date for the Factory Acceptance Test. The date for the Factory Acceptance Test must be no earlier than two (2) weeks from the date when the notification is received by BUYER. 5.2.2. BUYER will send its technical representatives and inspectors to SELLER’s Facility to complete the Factory Acceptance Test together with SELLER’s technical representatives and inspectors. In addition to BUYER’s inspectors, BUYER’s lenders and shareholders may also send their inspectors. The expenses of sending BUYER’s inspectors, or the inspectors of BUYER’s lenders and shareholders, shall be for BUYER’s account. 5.2.3. Prior to commencement of the Factory Acceptance Test, SELLER shall provide BUYER with technical instruction in the operation and maintenance of the Equipment as described in Appendix 2. After completing the technical instruction, SELLER shall commence the Factory Acceptance Test, and provided that the Equipment meets the Technical Specifications, BUYER and SELLER shall sign the Factory Acceptance Certificate. SELLER shall ship the Equipment to BUYER as soon as practicable after successful completion of the Factory Acceptance Test, as evidenced by the Factory Acceptance Certificate signed by SELLER and BUYER; provided, however, that the SELLER may not ship the Equipment until the Factory Acceptance Certificate has been signed by BUYER. SELLER Initials & Date KM M▇▇▇▇ ▇, ▇▇▇▇ ▇▇▇▇▇ ▇▇▇tials & Date DS March 19, 2008 5.2.4. In addition to the foregoing, BUYER, its authorized representatives and its lenders, shareholders and their respective authorized representatives, may inspect the Equipment at any time prior to delivery of the Equipment FOB to the Port of Shipment. The expenses of any such inspection shall be for BUYER’s account. 5.2.5. The Factory Acceptance Test shall not be a substitute for the inspection of the Equipment at the Port of Unloading or the Work Site, or as a substitute for the Commissioning Test, and the Factory Acceptance Test shall not release SELLER from its warranty obligations as further specified in this Agreement.

Appears in 1 contract

Sources: Equipment Purchase & Sale Agreement (Hoku Scientific Inc)

Factory Acceptance Test. 5.2.1. SELLER shall inspect the Equipment to confirm that it meets the Technical Specifications, and shall thereupon send the ex-works quality certificate to BUYER, with notification of the planned date for the Factory Acceptance Test. The date for the Factory Acceptance Test must be no earlier than two (2) weeks from the date when the notification is received by BUYER, and shall be no later than nine (9) months after BUYER pays the Initial Payment to SELLER. 5.2.2. BUYER will send its technical representatives and inspectors to SELLER’s Facility to complete the Factory Acceptance Test together with SELLER’s technical representatives and inspectors. In addition to BUYER’s inspectors, BUYER’s lenders and shareholders may also send their inspectors. The expenses of sending BUYER’s inspectors, or the inspectors of BUYER’s lenders and shareholders, shall be for BUYER’s account.. SELLER Initials & Date 25/3-08 JB BUYER Initials & Date DN 4/8/08 5.2.3. Prior to commencement of the Factory Acceptance Test, SELLER shall provide BUYER with technical instruction in the operation and maintenance of the Equipment as described in Appendix 24. After completing the technical instruction, SELLER shall commence the Factory Acceptance Test, and provided that the Equipment meets the Technical Specifications, BUYER and SELLER shall sign the Factory Acceptance Certificate. SELLER shall ship the Equipment to BUYER as soon as practicable after successful completion of the Factory Acceptance Test, as evidenced by the Factory Acceptance Certificate signed by SELLER and BUYER; provided, however, that the SELLER may not ship the Equipment until the Factory Acceptance Certificate has been signed by BUYER. ; provided, however, that if BUYER does not attend the Factory Acceptance Test after having been given notification in accordance with Section 5.2.1 above, and if SELLER Initials & Date KM M▇▇▇▇ ▇conducts the Factory Acceptance Test in BUYER’s absence, ▇▇▇▇ ▇▇▇▇▇ ▇▇▇tials & Date DS March 19and confirms that the Equipment meets the Technical Specifications, 2008then SELLER may sign the Factory Acceptance Certificate and the Factory Acceptance Test shall have been deemed completed without the Factory Acceptance Certificate being signed by BUYER. 5.2.4. In addition to the foregoing, BUYER, its authorized representatives and its lenders, shareholders and their respective authorized representatives, may inspect the Equipment at any time prior to delivery of the Equipment FOB to the Port of Shipment. The expenses of any such inspection shall be for BUYER’s account. 5.2.5. The Factory Acceptance Test shall not be a substitute for the inspection of the Equipment at the Port of Unloading or the Work Site, or as a substitute for the Commissioning Test, and the Factory Acceptance Test shall not release SELLER from its warranty obligations as further specified in this Agreement.

Appears in 1 contract

Sources: Equipment Purchase & Sale Agreement (Hoku Scientific Inc)