General Conditions

14.1       The goods supplied by CHENGLI shall meet the specifications as set out in the corresponding agreement. No guarantee shall be given, unless otherwise indicated in the agreement and unless a manufacturer’s warranty is given, in which case CHENGLI gives no further or other warranty than said manufacturer’s warranty. With respect to services, CHENGLI warrants that the services are rendered properly and to the best of its ability, as is customary in the sector and according to the current standards and expertise. If and to the extent CHENGLI undertakes to load cargo in the good(s) at the client’s request, such is done only by order of the client and entirely at the client’s risk and expense. CHENGLI does not accept any liability in this respect.

14.2       CHENGLI only issues guarantees for newly delivered motor vehicles and goods, as well as new parts, exclusively and only insofar as factory guarantees apply. In all other cases, the other Party can only invoke a guarantee if this has been explicitly issued in writing. 

14.3       Claims under the warranty cannot be made if:

The goods have been used for purposes other than for which they are normally intended, or in the opinion of CHENGLI have been used or transported improperly or have been repaired, altered or adjusted by the client or a third party;

• The damage has been caused by negligence of the client (for example, by insufficient or incorrect maintenance or storage) or by the client having acted contrary to instructions, indications and advice of CHENGLI;
• The claim relates to parts which are subject to normal wear and tear, parts of which the seal has been broken or accessories;
• Client has not fulfilled its obligations towards CHENGLI (both financially and otherwise);
• Client upon discovery of the defect has failed to take all actions and refrain from all actions to prevent further damage from occurring, for example, by continuing to use the goods.

14.4       The guarantee is always limited to:

• Manufacturing errors, thus excluding damage as a result of improper, careless or incompetent use/maintenance, which includes amongst other things: overloading, use of other fuels and oils than appropriate for the vehicle, other than the prescribed maintenance and incompetent operating and/or use of the vehicle, non-compliance with the instructions for use or maintenance requirements by the other Party or a third party, and also excluded from the guarantee at all times are defects as a result of normal wear and tear, accidents or disasters, such as fire and water damage;
• Factory warranty;
• Repair or replacement of the goods delivered. 

14.5       CHENGLI never warrants the absence of defects, which are the consequence of complying with any mandatory governmental laws and regulations regarding the nature or the quality of the raw materials and/or materials applied in the delivered goods.

14.6       CHENGLI guarantees repairs carried out for a period on a case-by-case basis, from completion of the repairs. The other Party that issued a repair job should submit a claim in writing to CHENGLI immediately after identifying the defect, offering CHENGLI the opportunity to correct the defect. 

14.7       Claims under the warranty cannot be made if:

The goods have been used for purposes other than for which they are normally intended;

• In the opinion of CHENGLI, have been used or transported improperly or have been repaired, altered or adjusted by client or a third party;
• The damage has been caused by negligence of client (for example, by insufficient or incorrect maintenance or storage) or by client having acted contrary to the instructions, indications and advice of CHENGLI;
• The claim relates to parts which are subject to normal wear and tear, parts of which the seal has been broken or accessories;
• Client has not fulfilled its obligations towards CHENGLI (both financially and otherwise);
• Client upon discovery of the defect has failed to take all actions and refrain from all actions to prevent further damage from occurring, for example, by continuing to use the goods.

14.8       Any claim under the guarantee expires if the claim in writing is missing and/or if the other Party or third party have already carried out work to remedy the defect without prior knowledge of or approval by CHENGLI and also in the case of processing, modifications, mixing, changes or repairs by the other Party or a third party to the goods delivered.

14.9       CHENGLI cannot invoke the expiry of the guarantee if the absolute necessity for immediate repairs is demonstrated, without the other Party being able to demand repairs to be carried out by CHENGLI and when the repairs fall under a valid guarantee. In such a case, however, the guarantee is limited to reimbursement of the costs CHENGLI would have incurred for repairs in its own workshop.

14.10     In respect of services or activities carried out by third parties, the guarantee terms agreed upon with these third parties by CHENGLI also apply according to the other Party. The claims by the other Party to the guarantee are, in such cases, therefore limited to the guarantees issued by third parties and their respective limitations.

14.11      If, for the satisfaction of guarantee obligations, CHENGLI replaces parts, the parts replaced become the property of CHENGLI, unless agreed otherwise.

14.12     As long as the other Party does not fulfil all its obligations under the Agreement to CHENGLI, the other Party cannot invoke any guarantee provisions.

14.13     Where client calls upon the guarantee given by CHENGLI in the corresponding agreement and makes a claim, CHENGLI shall assess the claim and if applicable, deal with the claim taking into account the provisions in the agreement in this respect. Guarantee claims cannot be transferred to third parties.