Contractor's Obligations and Responsibilities
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Questions and Answers

What is the primary responsibility of the CONTRACTOR regarding the design and data provided by the COMPANY?

  • Ensure correctness and precision. (correct)
  • Use the design without verification.
  • Ignore inaccuracies in data.
  • Modify the designs as needed.
  • What must the CONTRACTOR provide to the COMPANY regarding spare parts?

  • Prototypes of the parts.
  • Recommendations for suppliers.
  • A detailed list, including prices. (correct)
  • Only the part numbers.
  • Under what conditions can the CONTRACTOR delegate the manufacture of Equipment?

  • Without any restrictions.
  • If the Equipment is less than $10,000.
  • With verbal consent from COMPANY.
  • Only for components listed in the CONTRACTOR’s proposal. (correct)
  • Which of the following is EXCLUDED from the CONTRACTOR's obligations?

    <p>Mandating independent inspections without COMPANY's direction.</p> Signup and view all the answers

    What should the CONTRACTOR do in the event of an accident or property damage during the performance of the contract?

    <p>Report to COMPANY as soon as practicable.</p> Signup and view all the answers

    What is the emphasis of the CONTRACTOR's obligation in relation to COMPANY's instructions?

    <p>To adhere strictly unless it creates hazards.</p> Signup and view all the answers

    What must COMPANY do concerning representation?

    <p>Nominate an individual to act on its behalf.</p> Signup and view all the answers

    How does the CONTRACTOR prioritize the CONTRACT requests?

    <p>By giving CONTRACT requests from COMPANY first priority.</p> Signup and view all the answers

    What type of responsibilities does the CONTRACTOR have towards the Equipment?

    <p>To fulfill technical and commercial conditions specified.</p> Signup and view all the answers

    What is NOT included in the CONTRACTOR’s obligations?

    <p>Providing a warranty for all Equipment.</p> Signup and view all the answers

    Study Notes

    Contractor's Obligations

    • Contractor shall indemnify and hold Company harmless from any liability, damages, claims, fines, penalties, and expenses arising from violation of statutes, laws, regulations, ordinances, or contracts.
    • Contractor guarantees spare parts or equal functionality will be available for 10 years from Delivery start-up.
    • Contractor must comply with government agency procedures for Equipment manufacture and provide evidence upon request.
    • Contractor is responsible for recruiting, replacing, and managing personnel, including wages, social charges, insurance, bonuses, and taxes.
    • Contractor warrants Equipment was produced, sold, and delivered in compliance with all applicable laws, regulations, labor agreements, working conditions, and technical codes.

    Language and Authority

    • The Contract has been drawn up in English, and the English text is binding upon the Parties.
    • Contractor shall act as an independent Contractor and has no power to commit or bind Company.
    • Contractor shall not be considered an agent of Company for any purpose, including tax and social security coverage.

    Business Transactions

    • All transactions shall be based on service, quality, and competitive price of materials.
    • Contractor shall not pay salaries, commissions, or fees to Company employees or make gifts of significant cost or value.

    Contract Representation and Survival

    • Company commits to the Contract on its own behalf and as agent for its client and their co-venturers and co-licencees.
    • Contractor agrees to look only to Company for due performance of Company's obligations under the Contract.
    • The provisions of the Contract are for the benefit of the Parties hereto and not for any other third Party.
    • Certain Articles shall survive termination of the Contract, including Guaranties and Warranties, Liabilities and Indemnification, Taxes, Confidentiality, Copyright and Patent, and Miscellaneous provisions.

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    Description

    This quiz covers the contractual obligations of a contractor, including indemnification, spare part guarantees, compliance with government agency procedures, and other responsibilities.

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