Distribution Agreements · glossary

Defect

A fault in a machine’s design, materials, manufacture or instructions that existed when it was delivered to Tullavane. The faulty valve found in 30 machines in 2028 was one, so Cressby paid for the parts and €100 a machine repaired. Agreement, clause 1.1, “Defect” · Chapter 7 · see Indemnity, Recall

Explained in Chapter 7, CE Marking and Product Recalls: the Importer’s Duties, of Distribution Agreements.

How it comes up, in Chapter 7
Cressby then decides the fix, and Tullavane’s engineers fit new valves when the parts arrive. The faulty valve is a Defect, a fault in design, materials or manufacture that was there when the machine was delivered. So under clause 12.3, Cressby supplies the parts free and pays €100 for each machine repaired. 30 machines at €100 a machine is €3,000.
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As defined in the training Agreement
a defect in the design, materials or manufacture of a Product, or in its instructions, that existed when the Product was delivered to the Distributor;
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Related terms

Where this term lives

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