Purchase Contract

18.(inspection):

(1) the seller shall have the goods inspected by ______ days before the shipment and have the inspection certificate issued by____. the buyer may have the goods reinspected by ________ after the goods?rrival at the destination.

(2) the manufacturers shall, before delivery, make a precise and comprehensive inspection of the goods with regard to its quality, specifications, performance and quantity/weight, and issue inspection certificates certifying the technical data and conclusion of the inspection.after arrival of the goods at the port of destination, the buyer shall apply to china commodity inspection bureau (hereinafter referred toas ccib) for a further inspection as to the specifications and quantity/weight of the goods. if damages of the goods are found, or the specifications and/or quantity are not in conformity with the stipulations in this contract, except when the responsibilities lies with insurance company or shipping company, the buyer shall, within _____ days after arrival of the goods at the port of destination, claim against the seller, or reject the goods according to the inspection certificate issued by ccib. in case of damage of the goods incurred due to thedesign or manufacture defects and/or in case the quality and performance are not in conformity with the contract, the buyer shall, duringthe guarantee period, request ccib to make a survey.

19.(claim):

the buyer shall make a claim against the seller (including replacement of the goods) by the further inspection certificate and all the expenses incurred therefrom shall be borne by the seller. the claims mentioned above shall be regarded as being accepted if the seller fail to reply within ______days after the seller received the buyer's claim.20.(late delivery and penalty):

should the seller fail to make delivery on time as stipulated in the contract, with the exception of force majeure causes specified in clause 21 of this contract, the buyer shall agree to postpone the delivery on the condition that the seller agree to pay a penalty which shall be deducted by the paying bank from the payment under negotiation. the rate of penalty is charged at______% for every ______ days, odd days less than _____days should be counted as ______ days. but the penalty, however, shall not exceed_______% of the total value of the goods involved in the delayed delivery. in case the seller fail to make delivery ______ days later than the time of shipment stipulated in the contract, the buyer shall have the right to cancel the contract andthe seller, in spite of the cancellation, shall nevertheless pay the aforesaid penalty to the buyer without delay.