MACHIENRY SENT FOR DEMO PURPOSE

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This query is : Resolved

subhash sharma (Querist)

27 May 2011 WE HAVE (ABC LTD) SENT A MACHINERY TO A CUSTOMER ON DEMONSTRATION PURPOSE FOR 2 -3 DAYS HAVING MACHIERY VALUE OF Rs. 50 LACS.

HE HAS PREPARED A AGREEMENT ON OWN COMPANIES LETTER HEAD.

IN CASE MACHINERY DEMAGE 100% ON THE SITE OF CUSTOMER.

1. CAN WE FILE A CLAIM AGAINT THE
MACHINERY TO GET THE CLAIM.
2. CAN WE RECOVER AMOUNT OF LOST OF
MACHINERY FROM THE CUSTOMER.
3. CAN WE FILE A CLAIM WITH INSURANCE
COMPANY.

PLEASE ALSO CONFIRM AGREEMENT SHOULD BE PREPARED ON STAMP PAPER PAYING THE STAMP DUTY OR NOT.

U S Sharma

U S Sharma (Expert)

28 May 2011 demonstration means the customer is prospective buyer, and if demo is successful he will keep the machine with himself.

you can make transit insurance for the goods, but at customer premises its liability of customer to reimburse the damages to the supplier if the damages are done with his part of negligence.

Here the points to be ascertained that damage would be caused by a) mishandling of vendor b) manufacturing defect by vendor c) improper guidelines of vendor to receive and install/ run the machine,
in above case the customer is not liable for damages.

When any damage takes place, it must be treated "out of normal course handling" where the customer is liable for damages.

with "natural calamity/riots" which can be claimed by customer or vendor as per insurance terms from insurance.

Agreement on company letterhead is as good as its made on stamp paper.

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