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General Terms and Conditions

General Terms and Conditions of Lothar Lechler, Purchase and Sales of Antique and Collector´s Watches,
Schafgartenstr. 41, 71144 Steinenbronn
Terms of Sales and Shipment issued 04/2005
Tel.: 0 71 57 / 538 78 80
Fax: 0 71 57 / 538 78 88

I. In General
All contracts concluded between the purchaser and seller shall be on the basis of the following terms and conditions. These conditions shall always be valid, even if we do not explicitly mention them with subsequent follow-up contracts, unless the purchaser is neither a trader nor a merchant in accordance with the provisions of HGB (Handelsgesetzbuch). The General Terms and Conditions of the purchaser will not be valid for contracts made with us, even if we do not explicitly contradict them. Any oral additonal agreement requires our written approval.

II. Delivery Period
The period of delivery will commence with the mailing of the order confirmation. However, it will not start before the purchaser has handed in the requested papers, written approvals, releases or the payment rate that was agreed on or to be transferred in advance. The period of delivery will be complied with, if the shipment is available for dispatch or has already been dispatched from our business premises within the agreed period of time. The period of delivery is automatically prolonged with the appearance of unforeseeable obstacles, which are out-with our control such as market disturbances, delay incurred owing to the delivery from sub-deliverers in so far as the hindrances are directly related and have a substantial influence on the delivery of the product to be delivered. The period of delivery shall be extended in accordance with the extent of such measures and hindrances. The previously described circumstances are not to be represented by us should they occur during an already existing delay. In important cases, we will inform the purchaser of the beginning and end of such hindrances. Should the seller culpably pass the periods of delivery then he first of all comes into delay when the purchaser instructs him to deliver the goods within a reasonable period of time. Should the purchaser be a consumer within the terms of Paragraph 13 BGB then any claim to charges for late payment by minor negligence shall be calculated at 5% of the agreed purchase price. Should the purchaser be a business person, a legal person in terms of private law or public law or a public separate property, then any claim for charges for late payment is excluded. If the purchaser should additionally choose to rescind the contract and / or payment for damages then he must first of all provide us with a reasonable timeframe in which to fulfil the delivery. Should the purchaser decide to claim for damages instead of fulfilment of the contractual obligations then the restrictions contained in Number X 1b shall be applicable. Should it occur during the period of delay that accidentally delivery is possible then we shall be responsible within the framework of the following restrictions. Responsibility is also excluded in the case where when a claim for damages by punctual delivery would have been possible.

III. Extent of DeliveryThe extent of delivery shall be confirmed by our written order confirmation.

IV. Impossibility of Delivery
In so far as the delivery is impossible, the purchaser is permitted to claim for damages within the applicable legal regulations. Any claim to damages besides or instead of performance and to replacement due to futile expenditure is restricted to 5% of the value of the respective part of the delivery which cannot be made use of due to impossibility. Further claims due to impossibility will be excluded. This restriction will not be valid, if the impossibility is caused wilfully or culpably negligent. If the impossibility is based on force majeure the purchaser is not entitled to any claim.

V. Cost of Cancellation
If the purchaser withdraws the already given order, we will be entitled – notwithstanding the possibility - to claim a higher amount than the actual damage, being 10% of the sales price for any costs deriving from the handling of the order and for the missed benefit. The purchaser shall provide evidence of the damage incurred, should he claim lower damages.

VI. Packaging and Dispatch
Packaging material will become property of the purchaser and we will charge for it. Postage and packaging expenses will be separately invoiced. The decision as to the means of forwarding will be made to the best of our judgement.

VII. Property Rights
We shall make estimates of cost, presentations and descriptions of goods and other documents and data a provisio to proprietary title and copyright. This material may only be passed over to a third party after we have provided our written approval.

VIII. Point of Delivery and Devolution of Danger
The purchaser is obliged to accept delivery of the delivered good. The point of delivery can be chosen as either being direct delivery at our business premises in Steinenbronn or dispatch. The actual method of delivery will be determined by us. With direct delivery at our premises, the purchaser is granted the right of examination of the goods at our premises within 14 days after receipt of the reservation slip. The purchaser has the duty to accept the goods within the same period of time, unless he is innocently and temporarily unable to do so. Should the purchaser refuse to accept the goods, the seller can make use of his legitimate rights. Devolution of danger will be with the purchaser at acceptance of the respective goods. If the purchaser declares his unwillingness to accept the goods, the devolution of danger at a coincidental ruin or at a coincidental deterioration of the goods will be with the purchaser at the point of time of non-acceptance. In case of dispatch from our business premises the devolution of danger is with the purchaser by delivery of the goods to the forwarder. On written request of and to the account of the purchaser the goods will be insured against damages caused by breakage, by transport and by fire. Should a contract be made with a consumer in accordance with the provisions of § 13 BGB the devolution of danger at a coincidental ruin or at a coincidental deterioration is with the purchaser at delivery.

IX. Ratification of Prices
Ratification of prices will be legally binding, should a period of more than 4 month pass between the conclusion of the contract and the arranged delivery date. The purchaser will only be entitled to rescission, if the actual increase of price not only inconsiderably surpasses the general ratification of prices for antique and Collector´s watches in the market. Is the purchaser a full trader, a public legal person, or a public separate property we will be allowed to ratify our prices in accordance with the above mentioned regulation, if there are more than 6 weeks between the conclusion of the contract and the arranged delivery date.

X. Guarantee / Liability
The judicial regulations issued on January 1st 2002 are effective for a contract with a consumer (§ 13 BGB). As for the rest we take over the liability for defects of our delivered goods in the following manner:
a) During a period of 12 month time starting from the point of devolution of danger the purchaser has the right to claim repair in the first place. When choosing to make use of his right of performance guarantee, the purchaser shall observe to the principle of proportion. In case of a claim of repair, we will be obliged to compensate for all relevant expenses necessary for the course of mending the good as far as these costs will not be augmented by bringing the sold good to a third place which is not the place of delivery.
Expenses are particularly defined as being cost of transport, way, hours of work, and material.
Should the repair be unsuccessful or exorbitant, the purchaser is allowed to either recede from the contract or demand a reduction of the sales price. The right of recession from the contract or the right of reduction of the sales price can only be claimed after having requested repair within a reasonable period of time.

b) Our liability, as well as the liability of our legal representatives or our debtor´s agents is reduced to cases of criminal intent or gross negligence. When violating essential duties deriving from the contract, our general liability will be in accordance with legal regulations.
The claim of damages, however, is reduced to damages which are foreseeable and specific to the contract. The liability for damages due to the content of contract that can be claimed from other legal goods of the purchaser is barred, as long as the damages were not caused intentionally or by gross negligence. This rule also applies to claims for damages beside the actual performance and liability instead of performance no matter what legal base is applied, and especially for damages, for the infringement of duties deriving from debts, or for infringements deriving from a delictual act. It is also valid for claims of compensating vain expenses.

c) Natural wear is excluded from liability in any case. The same is valid for insignificant divergences compared to the agreed on condition, and for damages arising from false or careless treatment of the good after devolution of danger, and for damages due to special external influence which could not be foreseen in the contract. In case the claim of damage derives from a negligent or wrong mounting, we will only be obliged to fulfil performance guarantee, if the mounting of the sold good was done by a skilled specialist.
The competent execution of the mounting has to be presented and proven by the purchaser.

d) Damages deriving from incompetent treatment, or from excessive use, or from changing or repairing the good of the contract by the purchaser or any third party acting on the purchaser’s behalf without our explicit approval are barred from performance guarantee.

XI. Recourse
The purchaser has the right to have recourse in accordance with §§478 f. BGB, as long as he resells the goods to a consumer in the ordinary course of business and the defect accountably derives from the supplier’s product. Furthermore, the purchaser can claim for compensation of expenses that are related to the deal with the final consumer, if the final consumer’s damage was already existent at the devolution of danger to the purchaser. Recourse is only possible in so far as the purchaser and his respective final consumer have made no agreement exceeding the legally defined performance guarantee. The purchaser cannot make use of the right of claiming damages within the scope of entrepreneurial recourse.

XII. Reservation of Title
1. We make the property of the delivered goods a provisio until it is payed.
2. Is the purchaser’s conduct contrary to the terms of the agreement, especially concerning delayed payment, we will be entitled to demand the restitution of the object of a contract and / or to recede from the contract.
3. Neither the claim on reservation of title, nor the distress of the delivered goods by us function as a receding from the contract, as far as the legal regulations grant something else or it will be explicitly declared by us. If the provisio is made to full traders, a judicial person of the public law or a public separate property the following will be effective:
4. The purchaser has the right to resell the delivered goods in regular business manner; however, already now he cedes all claims of the sales price (including VAT) that was agreed on between us and the purchaser and which derive from trading. We accept the transfer.
The purchaser is allowed to debit this claim directly as soon as he has ceded it. Our fight of directly debiting the claim remains untouched by the later. However, we put an obligation on not to debit the claim directly as long as the purchaser has fulfilled the payment of his instalments correctly and punctually. Is the purchaser, however, delaying the payment, we can demand that the purchaser provides us with relevant information on the transferred claims, on the debtors, and on all information relevant for direct debiting. The respective papers must be handed over and the debtors (third party) must be informed about the reservation of title.
5. The purchaser is neither allowed to pledge the delivered goods, nor may he assign it by way of security. As soon as a distress, an attachment or any other disposition by a third party is levied on the assets and capital of the purchaser, or the purchaser goes insolvent or in composition with his debtors, he will immediately have to inform us and he will have to make available all relevant information and papers so that we can claim our given rights. Bailiffs and other third parties must be informed about our property.
6. We place an obligation on the release of our lawfully entitled securities as far as the purchaser will request it, in case their value will exceed the amount of the claim to be pledged for more than 20 % and in case this claim has not been settled yet.

XIII. Liability from Offence / Product Liability
Claims of liability from offence are barred, unless the damage was caused due to intent or gross neglicence. This is also valid for the actions of our sub-partners and debtor´s agents. At the violation of life, body or health we will be liable according to the currently valid legal regulations. In case a claim is made on product liability according to the „ProdHaftG“ we will also be liable according to the currently valid legal regulations.

XIV. Conditions and Terms of Payment
1. As far as there is no other explicit agreement, the sales price and any other additional cost are due for payment without any reduction within 14 days counting from the date of invoice.
2. Cheques and bills of exchange are only accepted after their discharge. The acceptance of exchange bills has always to be authorised by us in advance and in written form. With the acceptance of exchange bills the current fees for discount and other charges relating to banking operations will be calculated. They are due for immediate payment in cash.
3. We will add to the currently valid basis interest rate according to § 247 BGB 8% interest p.a. and charge this rate for late payment. For contracts with a consumer according to § 13 BGB the added rate of interest will be 5%. They will be lowered or increased, if we have to fulfil a debit with a higher interest rate, or if the purchaser can prove a lower charge. The proof of further damage due to delay is made a provisio.
4. Is the purchaser a full trader, a public juristic person or a public separate property it is not allowed to reserve any payments due to counter-claims of the purchaser, if they are not approved by us. Neither is it allowed to set them off.

XV. Place of Fulfilment and Legal Venue
1. Place of fulfilment is 71144 Steinenbronn, as far as no other explicit agreement has been made.
2. For all legal sues deriving from the contract the filing of a suit will have to be made at the Amtsgericht in Böblingen or the Landgericht in Stuttgart, if the purchaser is a full trader, a public legal person, or a public separate property. We are also entitled to file a suit at the legal siege of the purchaser.
3. The provisions of German law will be exclusively effective and the laws and regulations of international sales of mobile goods will be excluded, even if the purchaser’s main domicile is out-with Germany.

XVI. Miscelleanous
1. The transference of the purchaser’s rights and duties from the conclusion of a contract with us must be approved by us in written form in order to become valid.
2. Should one definition be or become void, the validity of all other definitions will remain untouched thereby.

XVII. Advise of Revocation

The seller has the right to revoke his declaration of the contract within a month without given a reason in written English (e.g. letter, fax, E-Mail) or by return the item back to the buyer in time. The period of time begins not before receiving this advise of revo-cation in written words, but not before the day of receiving the delivery of goods. For maintenance the period of time, the return of the advise of revocation or the return of the goods in time is sufficient. The revocation is to be send to the following contact address:

Lothar Lechler
Schafgassenstrasse 41
D-71144 Steinbronn
Germany
Fon ++49 7157 5387880
Fax ++49 7157 5387888

Consequences of revocation:

In case of a revocation, both parties agree with re-granting the already received performances. For items, which are able to be sent by parcel post, are to be returned back at the expenses and danger of the seller. The buyer has to take the costs for return back the goods to the seller, in case the delivered goods correspond with the ordered goods and the value of the returned goods does not exceed 40 EUR, or, if the seller has not given his agreed return by a higher value of the goods at the time of revocation, or if he has not fulfilled a contracted part payment. In all other cases, the return of the goods are for free for the buyer. Items, which are not able to send by parcel post will be collected at your address. Obligations to refund payments have to be fulfilled by the buyer within 30 days after sending the declaration of the revocation by post.

Delivery of books have to send back in case of revocation in the original package without any damage. In case of damage or removal of the original package, 50 % of the selling price become due as depreciation value, without considering a depreciation for further damages of the original goods.