Terms & Conditions


  1. INSPECTION AND ACCEPTANCE - All items are subject to final inspection and acceptance by OCTA at destination notwithstanding any payment, passage of title, or prior inspection or test at SELLER’s facilities. Final inspection will be made within a reasonable time after receipt of items hereunder. SELLER shall notify OCTA of any known nonconforming product that is expected to be delivered or has been delivered. OCTA shall have authority to approve or refuse identified nonconforming product. Defective goods may be returned at SELLER’s expense.
  2. CHANGES - By written notice or order, OCTA may, from time to time, order work suspension and/or make changes in quantities, drawings, designs, specifications, place of delivery or delivery schedules, methods of shipment and packaging, and property and services furnished by SELLER. If any such change causes an increase or decrease in the price of this agreement or in the time required for its performance, SELLER or OCTA shall promptly notify the other party thereof and assert its claim for adjustment within thirty (30) days after the change is ordered, and an equitable adjustment shall be made. However, nothing herein shall excuse SELLER from proceeding immediately with the agreement as changed.
  3. DEFAULT AND EXCESS REPROCUREMENT LIABILITY - OCTA may terminate this agreement if a federal or state proceeding for the relief of debtors is undertaken by or against SELLER, or if SELLER makes an assignment for the benefit of creditors, or if SELLER fails after reasonable notice by OCTA to cure a deficiency in performance or lack of progress thereto. OCTA shall have such additional remedies as may be available whether or not it so terminates this agreement, including, but not limited to, payment by SELLER to OCTA of expenses incurred by OCTA in reprocuring elsewhere the same or similar items or services defaulted by SELLER hereunder, provided SELLER’s reprocurement expenses obligation shall be limited to the excess costs above the price specified herein for such items or services.
  4. INDEMNIFICATION - SELLER shall indemnify, defend, and hold harmless OCTA from and against any and all claims (including attorneys’ fees and reasonable expenses for litigation or settlement) for any loss, damage, claim, or harm for bodily injuries, including death or damage to property caused by SELLER or its employees, subcontractors, or suppliers in connection with the performance of this agreement.
  5. ASSIGNMENTS AND SUBCONTRACTORS - Neither this agreement nor any interest herein nor claim hereunder may be assigned by SELLER, either voluntarily or by operation of law, nor may all or substantially all of the agreement be subcontracted by SELLER without OCTA’s prior written consent. OCTA’s withholding of consent shall not be deemed to relieve SELLER of its obligations to comply fully with the requirements hereof.
  6. FEDERAL, STATE, AND LOCAL LAWS - SELLER warrants that, in the performance of this agreement, it shall comply with all applicable Federal, State and local laws and ordinances and all lawful orders, rules and regulations thereunder.
  7. INFRINGEMENT INDEMNITY - - In lieu of any other warranty by OCTA or SELLER against infringement, statutory or otherwise, it is agreed that SELLER shall defend, at its expense, any claim or suit against OCTA based on a claim that any item furnished under this agreement or the normal use or sale thereof infringes any United States Letters patent or copyright, and SELLER shall pay all costs and damages finally awarded in any such suit or claim, provided that SELLER is notified in writing of the suit or claim and given authority, information, assistance at SELLER’s expense for the defense of same. If the use or sale of said item is enjoined as a result of such suit, SELLER, at no expense to OCTA, shall obtain for OCTA the right to use and sell said item, or shall substitute an equivalent item acceptable to OCTA, and extend this patent indemnity hereto.
  8. TITLE AND RISK OF LOSS - Unless otherwise provided in this agreement, SELLER shall have title to and bear the risk of any loss of or damage to the items purchased hereunder until they are delivered in conformity with this agreement at the F.O.B. point specified herein, and upon such delivery, title shall pass from SELLER, and SELLER’s responsibility for loss or damage shall cease, except for loss or damage resulting from SELLER’s negligence. Passing of title upon such delivery shall not constitute acceptance of the item by OCTA.
  9. NOTICE OF LABOR DISPUTE - Whenever SELLER has knowledge that any actual or potential labor dispute may delay this agreement, SELLER shall immediately notify and submit all relevant information to OCTA. SELLER shall insert the substance of this entire clause in any subcontract hereunder as to which a labor dispute may delay this agreement. However, any subcontractor need give notice and information only to its next higher-tier subcontractor.
  10. EQUAL EMPLOYMENT OPPORTUNITY - In connection with the execution of this agreement, the SELLER shall not discriminate against any employee or applicant because of race, religion, color, sex or national origin. The SELLER shall take affirmative action to ensure that applicants are employed, and that employees are treated during their employment without regard to their race, religion, color, sex or national origin. Such actions shall include pay, or other forms of compensation and selection for training, including apprenticeship.
  11. TERMINATION FOR CONVENIENCE - OCTA may terminate this agreement for its convenience at any time, in whole or in part, by giving written notice to SELLER of such termination, effective on the date of such notice. Upon receipt of said notice, SELLER shall immediately take action not to incur any further obligations, costs, or expenses, except as may be reasonably necessary to terminate its activities. OCTA shall pay SELLER its allowable costs incurred to date of termination and those costs determined by OCTA to be reasonably necessary to effect such termination. All finished or unfinished documents and other materials procured or produced by SELLER hereunder shall, at the option of OCTA, become OCTA property upon the date of such termination.
  12. AUDIT AND INSPECTION OF RECORDS - SELLER shall provide OCTA such access to SELLER’s books, records, and facilities as may be deemed necessary to examine, audit, and inspect all work data, documents, and activities related to the goods or services described herein. SELLER shall maintain such books, records, data and documents on a generally accepted accounting basis and shall clearly identify and make such items readily accessible to such parties during SELLER’s performance hereunder and for a period of four (4) years from the date of final payment by OCTA hereunder.
  13. TIME IS OF THE ESSENCE - Time is of the essence in the performance of this agreement. SELLER’s delivery of the items and related data and/or documentation and/or performance of required services in accordance with the schedule are a material requirement of this agreement.
  14. WARRANTY - SELLER warrants to OCTA, its successors and customers that all items furnished to OCTA will be free from defects in material and workmanship, will conform to applicable drawings, designs, specifications and samples, will meet all functional and performance requirements and, to the extent this order calls for services to be performed, that such services will be free from defects in workmanship, will meet all of the requirements of this agreement and will be performed to the highest standards of workmanship in the industry. These warranties are in addition to all other warranties, express, implied or statutory. In addition, the warranties set forth in this section shall survive any inspection, delivery, acceptance or payment by OCTA.
  15. FORCE MAJEURE - Either party shall be excused from performing its obligations under this agreement during the time and to the extent that it is prevented from performing by an unforeseeable cause beyond its control, including but not limited to: any incidence of fire, flood; acts of God; commandeering of material, products, plants or facilities by the federal, state or local government; national fuel shortage; or a material act or omission by the other party; when satisfactory evidence of such cause is presented to the other party, and provided further that such nonperformance is unforeseeable, beyond the control and is not due to the fault or negligence of the party not performing.
  16. GOVERNING LAW - The laws of the State of California and applicable local and federal laws, regulations and guidelines shall govern this agreement.
  17. SEVERABILITY - - If any term, provision, covenant or condition of this agreement is held to be invalid, void or otherwise unenforceable, to any extent, by any court of competent jurisdiction, the remainder of this agreement shall not be affected thereby, and each term, provision, covenant or condition of this agreement shall be valid and enforceable to the fullest extent permitted by law.
  18. NOTICES - All notices hereunder and communications regarding the interpretation of the terms of this agreement, or changes thereto, shall be effected by delivery of said notices in person or by depositing said notices in the U.S. mail, registered or certified mail, return receipt requested, postage prepaid to the addresses set forth in the agreement.
  19. COMPLETE AGREEMENT - This agreement, the purchase order, and any attachments thereto or referenced therein, constitute the complete and exclusive statement of the term(s) and condition(s) of this agreement between SELLER and OCTA and supersede all prior representations, understandings, and communications.
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