Taxes and Contract Expenses Clause Samples
The "Taxes and Contract Expenses" clause defines the responsibilities of each party regarding the payment of taxes and other costs associated with fulfilling the contract. Typically, it specifies which party is liable for federal, state, or local taxes, as well as any additional expenses incurred during the execution of the agreement, such as materials, labor, or administrative fees. By clearly allocating these financial obligations, the clause helps prevent disputes over unexpected costs and ensures that both parties understand their fiscal responsibilities under the contract.
Taxes and Contract Expenses. 1.1 The Builder shall be solely responsible for and shall pay or cause to be paid, without recourse to the Buyer or any member of the Buyer’s Group, all taxes of any kind whatsoever that are imposed, determined or assessed in any of the following jurisdictions (the “relevant jurisdictions”) France or (if different) the country of the Shipyard or the country of any Subcontractor, in connection with: (i) the making, execution and performance of this Contract by the Builder; (ii) the construction, sale, delivery and export of the Ship in and from any of the relevant jurisdictions; (iii) the manufacture in, and importation and exportation of any Parts (other than Buyer’s Supplies) into or out of, any of the relevant jurisdictions; and (iv) the receipt of the payment of the Contract Price in France, and the Builder shall indemnify fully, hold harmless and defend the Buyer and other protected parties from and against any actions, claims, costs, liabilities and losses which any of them may suffer or incur in relation to any such taxes.
1.2 The Buyer shall be solely responsible for and shall pay or cause to be paid, without recourse to the Builder, all taxes of any kind whatsoever that are imposed, determined or assessed in connection with: (i) the making, execution and performance of this Contract by the Buyer (other than any taxes imposed, determined or assessed in any of the relevant jurisdictions for which the Builder is responsible); (ii) the importation into any of the relevant jurisdictions of any Buyer’s Supplies delivered by the Buyer to the Builder or any Subcontractor; (iii) the importation of the Ship or any Parts into the country of the Buyer; and (iv) the residence or activities of any of the Buyer’s representatives in France, and the Buyer shall indemnify fully, hold harmless and defend the Builder from and against any from and against any actions, claims, costs, liabilities and losses which the Builder may suffer or incur in relation to any such taxes.
Taxes and Contract Expenses