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General Terms and
Conditions
Article 1: Agreement, offer and
confirmation
1.1 Applicability of General Terms and Conditions
These General Terms and Conditions shall apply to the making, the content
and the performance of all agreements between the client and the
contractor (Dan Taylor).
1.2 Offers
All offers shall be valid for two months. Prices quoted may be subject to
change owing to unforeseen changes in the work or incomplete knowledge.
1.3 Written confirmation
Commissions are to be confirmed by the client in writing. If the client
fails to do so, yet does assent to the contractor commencing the work
commissioned, the terms of the offer shall be deemed to have been agreed.
Any subsequent oral agreements and stipulations shall not be binding on
the contractor until after they have been confirmed by him in writing.
1.4 Several contractors
If the client wishes to commission a particular work from the contractor
and other persons or bodies concurrently, he shall so inform the
contractor and state the names of those other persons or bodies.
1.5 Identical work previously commissioned from another
If the client has previously commissioned an identical work from another
person or body he shall so inform the contractor, stating the name of that
other person or body.
Article 2: Performance of the agreement
2.1 Execution of work commissioned
The contractor shall make every effort to carry out the work commissioned
carefully and independently, to promote the client's interests to the best
of his ability and to achieve a result fit for the purpose for which the
client intends to use it. To such extent as necessary the contractor shall
keep the client advised of the progress of the work.
2.2 Supply of data
The client shall be required to do all such acts and things as are
reasonably needed or desirable to enable the contractor to effectuate
punctual and proper delivery, in particular by supplying (or causing to be
supplied) in good time complete, sound and clear data, any relevant
information or other materials.
2.3 Requests for other suppliers'
quotations
If at the client's request the contractor provides an estimate of costs of
third parties such estimate shall be an approximation only. If wished the
contractor may on the client's behalf obtain quotations from third
parties.
2.4 Use of other suppliers
Unless otherwise agreed, instructions to third parties to be given in the
context of executing the work commissioned shall be given by or on behalf
of the client. At the client's request the contractor may act as agent at
the client's expense and risk. The parties may agree on a specific fee for
such services. If for the purposes of executing the work commissioned the
contractor, by expressly agreed arrangement, shall at his own expense and
risk procure goods or services from third parties for the client's
benefit, the terms in such third parties' general conditions relating to
the quality, quantum, properties and delivery of such goods or services
shall also apply to the client.
2.5 Production, publication and reproduction
Prior to production, reproduction, publication or any usage each party shall give the
other the opportunity to check and approve the final draft, prototype or
galley proofs of the design. If the contractor is to place orders with or
give instructions to manufacturing companies or other third parties,
whether or not in the client's name, then when so requested by the
contractor the client shall confirm his aforesaid approval in writing.
2.6 Term of delivery
Any term stated by the contractor for completing the design shall be an
approximation, unless the nature or provisions of the agreement show
otherwise. Even if a specific term for completion of the design has been
stated, the contractor shall not be in default unless and until by letter
sent by recorded delivery the client has given him notice of default and
the contractor has failed to remedy his default within the reasonable term
for specific performance set in that notice of default.
2.7 Tests, licences and statutory
requirements
Unless otherwise agreed, the work which the contractor is commissioned to
do shall not include running tests, applying for licences and assessing
whether the client's instructions meet applicable statutory or quality
requirements.
2.8 Any complaints to the contractor
are to be made in writing at the earliest possible time but no later than
within five working days after completion of the work commissioned.
Article 3: Intellectual and other property rights
3.1 Copyright and industrial property
Unless otherwise agreed, all intellectual and industrial property rights
arising from the work commissioned - including copyright, design rights
and patent rights - shall vest in the contractor. If any of such rights as
aforesaid can be acquired only by registration, the contractor shall have
the sole and exclusive power to effectuate such registration.
3.2 Search for the existence of
rights
Unless otherwise agreed, the work commissioned shall not include
conducting searches for the existence of patent rights, trademark rights,
drawing or design protection rights, copyrights and portrait rights of
third parties. The same applies to any investigation into the possibility
of such forms of protection for the client.
3.3 Reference to contractor's name
Unless the work is not suitable for that purpose, the contractor shall at
all times be entitled to imprint his name on or in or to remove it from
the work (or to have his name imprinted on or in or removed from the work)
and without the contractor's prior authorization the client shall not be
permitted to produce, manufacture, publish or reproduce the work without identifying the
contractor by name.
3.4 Property vested in contractor
Unless otherwise agreed, all working drawings, illustrations, prototypes,
scale models, templates, drafts, design sketches, films and other
materials or (electronic) data files made by the contractor in the course
of executing the design shall remain the property of the contractor,
irrespective of whether the same have been released to the client or to
third parties.
Article 4: Use and licence
4.1 Use
When and provided that the client fulfils all his obligations under the
agreement with the contractor he shall acquire an exclusive licence to use
the design solely for purposes of production, publication and reproduction as such
purposes were agreed when the work was commissioned.
If no specific purposes as aforesaid have been agreed the licence shall be
limited to that manner of use of the design on which firm intentions
existed on the date when the work was commissioned. Such intentions must
have been verifiably stated to the contractor prior to the making of the
agreement.
4.2 Broader use
Without the approval of the contractor previously obtained in writing the
client shall not be entitled to any broader use of the design than as
agreed.
4.3 Alterations
Unless otherwise agreed, without the approval of the contractor previously
obtained in writing the client shall not be permitted to make (or have or
allow others to make) any alterations in the provisional or final design.
4.4 Own promotion
The contractor shall be at liberty to use the design for his own publicity
or promotion, provided that in doing so he shall duly observe the client's
interests.
Article 5: Fee
5.1 Fee and additional costs
In addition to payment of the agreed fee, the contractor shall also be
entitled to be reimbursed for the costs incurred by him in the execution
of the work commissioned.
5.2 Fee for additional work
If as a result of complete, sound and clear data and/or materials not
having been supplied on time or not having been supplied at all, or as a
result of altered or incorrect instructions or briefing, the contractor is
required to do more or other work, payment for such additional work shall
be charged separately on the basis of the scale of fees customarily
applied by the contractor.
5.3 Audit
If the remuneration to be paid is in any way contingent upon events or
conditions which are to appear from the client's records of account, upon
receiving a statement of account from the client the contractor shall be
entitled to have the client's records of account audited by a chartered
accountant. If such audit shows that the client's statement is
inconsistent with the actual facts and figures the client shall be
required to pay the costs of the audit.
Article 6: Payment
6.1 Obligation of payment
All payments made to the contractor are in US dollars. The client shall pay the contractor an initial payment of 35% percent of
the estimate of the work to be performed as determined by the contractor. This is to be paid to the contractor at the time an agreement has been
reached. All subsequent payments are to be made within 30 days of the date of invoice. If upon the
expiry of this term the contractor has not received payment (in full), the
client shall be in default and shall be charged interest at the statutory
rate. All costs incurred by the contractor in connection with overdue
payments, such as costs of litigation and judicial and extrajudicial
costs, including the cost of legal assistance, bailiffs and debt
collection agencies, shall be for the client's account. The extrajudicial
costs shall be not less than 10% of the invoice amount, with a minimum of
US$2500.
6.2 Periodic payments
The contractor shall have the right to bill the client at monthly
intervals for labour performed and costs incurred in the course of
executing the work commissioned.
6.3 No reduction or set-off
The payments due to the contractor shall be made by the client without any
reduction or set-off, save for settlement against adjustable advance
payments relating to the agreement which the client may have made to the
contractor.
6.4 Cessation of licence
In the event that the client fails to honour his debts (in full) or is
otherwise in default of fulfilling his obligations under the agreement,
then as from the moment of such default the client shall no longer be
permitted to use the design supplied to him and each or any licence given
to the client under the agreement shall cease to operate, unless in the
light of the entire work commissioned by him the client's shortcoming is
of minor significance.
Article 7: Cancellation and termination of agreement
7.1 Cancellation of agreement by client
If the client cancels the agreement he shall be required to pay, in
addition to compensation, the contractor's fee and the costs incurred in
connection with the work carried out until the date of cancellation.
7.2 Termination of agreement by
contractor
If the agreement is terminated by the contractor by reason of the client's
culpable failure to perform the agreement, the client shall be required to
pay, in addition to compensation, the contractor's fee and the costs
incurred in connection with the work carried out until the date of
termination. In this context any conduct by the client on the grounds of
which the contractor cannot reasonably be required to complete the work
commissioned shall also be considered a culpable failure to perform the
agreement.
7.3 Compensation
The compensation referred to in the preceding two paragraphs of this
article shall comprise at least the costs arising from obligations which
the contractor has in his own name contracted with third parties for the
purposes of executing the work commissioned, as well as 30% of the balance
of the fee which the client would owe to the contractor if the work
commissioned were fully completed.
7.4 Insolvency
The contractor as well as the client shall have the right to terminate the
agreement, in whole or in part, with immediate effect in the event that
the other party is adjudged bankrupt or, if a body corporate, goes into
compulsory liquidation, or by court order is granted suspension of
payments.
7.5 Use of designs after premature
termination
If for any reason whatsoever the agreement is terminated prematurely the
client shall not be permitted to use (or continue to use) the designs or
any other work supplied to him and each or any licence given to the client under the
agreement shall cease to operate.
Article 8: Warranties and indemnity
8.1 Copyright owner
The contractor warrants that the design supplied to the client has been
made by him or on his behalf and that if the design is protected by
copyright the contractor is the author thereof in the terms of the
Copyright Act and as copyright owner has the power of
disposition of the work.
8.2 Indemnity for claims relating to
use of design
The client shall indemnify the contractor or persons employed by the
contractor in the execution of the work commissioned against any claim or
action by third parties arising from the application or use of the design
created by the contractor or persons as aforesaid.
8.3 Materials and information
supplied by client
The client shall indemnify the contractor against any claim or action
relating to intellectual property rights in materials or information
supplied by the client and used in the execution of the work commissioned.
Article 9: Liability
9.1 The contractor cannot be held liable for:
a. faults in materials which the client has supplied;
b. misunderstandings or errors in respect of the performance of the
agreement if the cause of such misunderstandings or errors lies in acts or
omissions of the client, such as in a case where complete, sound and clear
information and/or materials have not been supplied on time or not at all;
c. errors by third parties employed by or on behalf of the client;
d. faults in offers made by suppliers, or prices quoted by suppliers being
exceeded;
e. faults in the design or errors in the text/data if in accordance with
the provisions of article 2.5 the client has given his approval or has had
the opportunity to carry out a check and has declined to make such check;
f. faults in the design or errors in the text/data if the client has
omitted to have a particular model or prototype made or a particular test
carried out and the faults would have been apparent in such model,
prototype or test.
9.2 Limitation of liability
The liability of the contractor for damage or
loss arising from an agreement or any wrongful act committed against the
client shall be limited to an amount reasonably proportionate to the
quantum of the work commissioned, provided that such amount shall not
exceed US$5,000.
9.3 Cessation of liability
Any and all liability shall cease upon the expiry of one month from
the date of completion of the work commissioned.
9.4 Copies of materials
Where reasonably possible the client shall be required to retain copies of
materials and data he has supplied until the work commissioned has been
completed. If the client fails to do so the contractor cannot be held
liable for any damage or loss which would not have occurred if such copies
had existed.
9.5 No obligation to retain
materials and data
After completion of the work commissioned the client and the contractor
shall have no obligation to each other to retain any of the materials and
data used.
Article 10: Other terms
10.1 Transfer or assignment to third parties
The client shall not be permitted to transfer or assign to third parties
any of the rights under an agreement made with the contractor, save in the
event and as part of a transfer of the whole of the client's business.
10.2 Confidentiality
Both parties shall be required to treat as strictly confidential all facts
and circumstances relating to the other party of which they gain knowledge
within the context of the work commissioned. The same duty of
confidentiality in respect of such facts and circumstances shall be
imposed on third parties who may be employed in the execution of the work
commissioned.
10.3 Headings
The headings in these General Terms and Conditions serve for orientation
purposes only and do not constitute part of these Terms and Conditions.
10.4 Arbitration
At the sole discretion of the
contractor, should any dispute occur between the client or contractor
arising out of or related to this Agreement, that dispute shall be settled
and determined by arbitration in a jurisdiction and by an arbitrator
chosen by Dan Taylor. The decision and award of the arbitrator shall be final
and binding and the award to be rendered may be entered in any court
having jurisdiction. The arbitration shall be held in a location chosen by
Dan Taylor. The arbitrator shall not have authority to award punitive or other
non-compensatory damages to either party. Each party shall bear its own
costs of the arbitration; other costs or expenses of the arbitration will
be split and paid equally by the client and contractor.
10.5 Force majeure
No party hereto shall be liable to the
others for any loss, damage, delay or failure of performance, that is
caused by an act or event beyond its reasonable control (an "event of
force majeure"), including but not limited to, acts of God, civil
disturbances, war, strikes, emergency laws, regulations or government
proclamations, or acts or failure to act of any governmental entity.
Failure by either party to perform under this Agreement, because of the
endurance of an event of force majeure for more than three months, will
represent a ground for its termination on ten days written notice.
10.6 Legal
jurisdiction
Any disputes arising hereunder shall be
governed exclusively in the following manner as prescribed by Dan Taylor. Should
the contractor, at his sole discretion, not wish to proceed with
arbitration as described in section 10.4, then the
parties hereto expressly consent to any judicial district or jurisdiction as
the contractor may determine, in any and all actions, disputes, or controversies relating
hereto. These provisions and any rules, policies or guidelines posted on
this Web site by Dan Taylor constitute the entire agreement between Dan Taylor and you
with respect to the subject matter hereof. No waiver by either Dan Taylor or you
of any breach or default hereunder shall be deemed to be a waiver of any
preceding or subsequent breach or default. If any provision contained
herein shall be determined to be void, invalid, or otherwise unenforceable
by a court of competent jurisdiction, such termination shall not affect
the remaining provisions contained herein. The parties have required that
these provisions and all documents relating thereto be drawn up in
English.
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