Document No.: FN-PUR-014
Revision No.: 5
This Purchase Order (hereinafter called “PO”) is subject to and shall include the
terms and conditions herein contained. No variation, change, modification or
revision of the terms and conditions are permitted or allowed EXCEPT by the
consent in writing of the Buyer’s duly authorized purchasing representatives or
The Seller warrants that the prices quoted for the goods or services in this PO are
not in excess of the prices charged to other customers for products of similar
product quantities and delivery requirements or similar type of services rendered.
All invoices must be submitted in duplicate and contains the following information:-
a) Purchase Order Number;
b) Purchase Order Item Number;
c) Product Description;
d) Model Number / Drawing Number;
f) Unit Prices;
g) Amount; and
h) Any Other Information Specified.
Payment of invoices shall not constitute acceptance of products and are subject to
adjustments for errors, shortages, defects in the products or failure of the Seller to
meet the requirements of this PO. The Buyer shall be entitled to set off any amount
owed by the Buyer to the Seller against any amount owed by the Seller or any of its
subsidiaries or affiliated companies to the Buyer.
4. PACKING AND SHIPMENT
Unless otherwise specified in this PO, when the price is based on the weight of the
ordered product, such price is to cover the net weight of products ordered only and
the Seller shall not separately charge the Buyer for boxing, carting, drayage,
storage or other packing requirements or any allowance for damage in foregoing.
Unless otherwise specified in this PO, all products shall be packed, marked and
otherwise prepared by the Seller for shipment in a manner which is:-
a) In accordance with good commercial practice;
b) Acceptable to common carriers for shipment at the lowest rate for the particular product;
c) Adequate to ensure the safe arrival at the named destination for storage and protection against the elements;
d) Marked all containers with necessary lifting, handling and shipping information
and names of consignee and consignor together with an itemized packaging
sheet accompanying each shipment;
e) Complied with lot packing requirement upon Buyer’s request.
The Buyer will only pay for the maximum quantities ordered as per this PO and the
Seller shall bear the risk and expenses of over shipments at the Seller’s own costs.
The Seller warrants as follows:-
a) All products delivered (including components, if any) shall be free from
defects in design, material and workmanship in accordance with this PO. All
products purchased are warranted to be of merchantable quality and shall be fit
and suitable for the purposes intended;
b) If any products delivered are found to be defective or do not conform to this PO,
the Buyer may at its option either require the Seller to make good the defect or
non-conformity at the Seller’s costs by way of repair (if possible) or replacement
or return such defective or non-conforming product to the Seller at the Seller’s
costs and recover from the Seller the order price paid; or
c) The Buyer’s approval of the Seller’s design and description of the product shall
not amount to acceptance of defective or non-conforming products.
The Buyer shall be entitled to inspect & test all products purchased hereunder prior
to final acceptance. In the event the product is found to be defective in material or
workmanship, the Buyer may choose to either reject it or require its correction at
the expense of the Seller. In the event of correction or replacement of product is
required and the Seller fails to do so within the delivery schedule, the Buyer may:-
a) Elect to terminate this PO and claim damages; or
b) Accept the defective product and require an appropriate reduction in price.
Notwithstanding all prior inspections, all products are still subject to final inspection
and acceptance at Buyer’s premise within a reasonable time after delivery.
The Buyer may by way of a written order make changes to the quantities, drawings,
designs, specifications, method of shipping, packing and/or place of delivery. Any
increase or decrease in the costs or time for performance shall be quoted by the
Seller within 7 working days of receipt by the Seller of the notification of change.
9. TERMINATION BY DEFAULT
The Buyer may by written notice to the Seller, terminate this PO in whole or in part
a) The Seller fails to deliver within the time specified;
b) The Seller fails to replace or correct the defective products; or
c) The Seller becomes insolvent or is wound up or is place under receivership.
In the event of termination, the Buyer shall be entitled to purchase similar or
substantially similar products and the Seller shall be liable to the Buyer for any
excess costs occasioned.
10. TERMINATION BY BUYER
The Buyer may terminate work under this PO, in whole or in part, at any time by
giving notice in writing to the Seller at which time the termination becomes
effective. The Seller shall cease all work and within 14 days after receipt of the
notice of termination, the Seller shall submit to the Buyer its written termination
claim which shall reasonably assess costs for raw materials, work in process,
subassemblies and all other reasonable costs.
For local company, the Seller shall bear all risks of loss, damage or confiscation of
the product until final acceptance by Buyer at destination. For overseas company,
the cost and risk should refer to Incoterms 2010.
12. PATENTS, ROYALTIES AND ENCUMBRANCES
The products supplied by the Seller must be free from any royalties, patents rights,
encumbrances or charges.
In the performance of this PO each party agrees that any private or confidential
information relating to equipment, apparatus, program, software, plans, drawings,
specifications and other data shall not be copied or published or disclosed any to
any third party whatsoever.
14. ASSIGNMENTS AND SUBCONTRACTS
The Seller shall not enter into any assignments, subcontracts or agreements of any
right or obligation in this PO without the prior written consent of the Buyer. Any
purported assignment, subcontract or agreement without such consent shall be null
and void and the Buyer shall not be obligated to recognize any claim from any such
assignments, subcontracts or agreements."
15. CHANGES IN PROCESS OR METHOD OF MANUFACTURING
Seller agrees that it will not invoke any changes in process or method of
manufacturing during the term of this PO without Buyer’s written consent. Seller
further agrees that any contemplated changes in process or method of
manufacturing will be submitted to Buyer in sufficient time to enable Buyer a
reasonable opportunity in which to evaluate such changes.
16. APPLICABLE LAW
The law applicable to this PO shall be Malaysian Law irrespective of jurisdiction of
A complete Inspection Report is required during delivery or else delivery will be
rejected. This clause is applicable to all fabrication parts.
Any project work involving servicing, protection or removal job that needs to be
done in Buyer’s premises, requires full compliance by the Seller, (any employees,
agents or subcontractors of the Seller) to observe strictly the Buyer’s Safety Policy.
Refer TERMS AND CONDITIONS OF PURCHASE (AEROSPACE)