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Philippine Bidding Documents - UP Baguio

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settled by arbitration. Arbitration may be commenced prior to or after delivery ofthe Goods under this Contract.20.4. Arbitration proceedings shall be conducted in accordance with the rules ofprocedure specified in the SCC.20.5. Notwithstanding any reference to arbitration herein, the parties shall continueto perform their respective obligations under the Contract unless they otherwiseagree; and the Procuring Entity shall pay the Supplier any monies due theSupplier.21. Liability of the Supplier21.1. Subject to additional provisions, if any, set forth in the SCC, the Supplier’sliability under this Contract shall be as provided by the laws of the Republic of the<strong>Philippine</strong>s.21.2. Except in cases of criminal negligence or willful misconduct, and in the case ofinfringement of patent rights, if applicable, the aggregate liability of the Supplierto the Procuring Entity shall not exceed the total Contract Price, provided thatthis limitation shall not apply to the cost of repairing or replacing defectiveequipment.22. Force Majeure22.1. The Supplier shall not be liable for forfeiture of its performance security,liquidated damages, or termination for default if and to the extent that its delayin performance or other failure to perform its obligations under the Contract isthe result of a force majeure.22.2. For purposes of this Contract the terms “force majeure” and “fortuitousevent” may be used interchangeably. In this regard, a fortuitous event or forcemajeure shall be interpreted to mean an event which the Contractor could nothave foreseen, or which though foreseen, was inevitable. It shall not includeordinary unfavorable weather conditions; and any other cause the effects ofwhich could have been avoided with the exercise of reasonable diligence by theContractor.22.3. If a force majeure situation arises, the Supplier shall promptly notify theProcuring Entity in writing of such condition and the cause thereof. Unlessotherwise directed by the Procuring Entity in writing, the Supplier shall continueto perform its obligations under the Contract as far as is reasonably practical, andshall seek all reasonable alternative means for performance not prevented by theforce majeure.23. Termination for Default23.1. The Procuring Entity shall terminate this Contract for default when any of thefollowing conditions attends its implementation:(a) Outside of force majeure, the Supplier fails to deliver or perform any or all ofthe Goods within the period(s) specified in the contract, or within anyextension thereof granted by the Procuring Entity pursuant to a request madeby the Supplier prior to the delay, and such failure amounts to at least tenpercent (10%) of the contact price;(b) As a result of force majeure, the Supplier is unable to deliver or perform anyor all of the Goods, amounting to at least ten percent (10%) of the contractprice, for a period of not less than sixty (60) calendar days after receipt of thenotice from the Procuring Entity stating that the circumstance of forcemajeure is deemed to have ceased; or(c) The Supplier fails to perform any other obligation under the Contract.Page 29 of 38

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