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accordingly. The Purchaser acknowledges that Verity Systems does not write software comprised in
Products sold by it and, accordingly, the Purchaser acknowledges that it is its sole responsibility to
check (by the application of appropriate diagnostic software) for the presence of computer viruses in
software comprised in Products before such Products are used or disposed of. In the event that the
Purchaser establishes to Verity Systems’ reasonable satisfaction that the Products are not in
accordance with the contract or are so defective, the Purchaser’s sole remedy in respect of such
non-accordance or defects shall be limited as Verity Systems may elect to the replacement of the
Products or refund of the purchase price or, where sums are owed by the Purchaser to Verity
Systems, the issue of a credit note against the return of the Products.
THE PURCHASER MUST REFUSE PARCELS DELIVERED TO HIM IN A DAMAGED CONDITION.
In no circumstances shall Verity Systems be liable to compensate the Purchaser in damages or
otherwise for non-delivery or late delivery of the Products or for any loss consequential or otherwise
arising from non-delivery or late delivery.
8. CANCELLATION OF ORDER
If at any time the Purchaser cancels an order for goods or services which Verity Systems specifies to
be “non-standard”, i.e. not detailed on the current price list, Verity Systems shall be entitled to claim
as damages an amount equal to 75% of the value of the order. For standard goods or services
damages would equate to 50% of the value of the order. These amounts the Purchaser agrees
represents a genuine pre-estimate of Verity Systems’ loss. Upon the cancellation of any order,
Verity Systems shall have the right to realize at its discretion after 60 days all monies, securities or
goods pledged with or held by it on behalf of the Purchaser and to apply the proceeds in or towards
the satisfaction of such claim for damages and the Purchaser shall have no claim whatsoever
against Verity Systems in connection therewith.
9. PASSING OF PROPERTY AND RISK
The goods shall remain the sole and absolute property of Verity Systems as legal and equitable
owner until such times as the Purchaser shall have paid to Verity Systems the agreed price. From
delivery of the goods the Purchaser acknowledges that he is in possession of the goods solely as
bailee for Verity Systems as shall as bailee insure and keep the same insured in the name of Verity
Systems in their full reinstatement value in some reputable insurance office and indemnify Verity
Systems for any uninsured loss thereof. For the purpose of recovering the goods Verity Systems
may enter any premises where the goods are stored or where they are reasonably thought to be
stored and may repossess the same. Until such time as the purchaser becomes the owner of the
goods he will store them on his premises in a manner, which makes them readily identifiable as the
goods of Verity Systems. The Purchaser is licensed by Verity Systems to agree to sell Verity
Systems’ goods subject to the express conditions that the entire proceeds thereof are held in trust
for Verity Systems and are not mingled with other monies or paid into any overdrawn Bank Account
and shall be at all times identifiable as Verity Systems monies. The Purchaser is licensed to use the
goods in the manufacture of other goods provided that if the goods being the property of Verity
Systems are mixed with goods being the property of the Purchaser or are processed with or
incorporated therein the product shall be deemed to be the sole and exclusive property of Verity
Systems.
If the goods being the property of Verity Systems are mixed with goods being the property of any
person other than the Purchaser or incorporated therein the product thereof shall become or shall be
deemed to be owned in common with that other person in proportion to the value of the constituent
parts therein. The Purchaser is licensed by Verity Systems to agree to sell on the said product
subject to the express condition hereinbefore mentioned in relation to the proceeds of sale thereof.
10. SPECIFICATION
All drawings, specifications and particulars of the goods submitted are approximate only. The
descriptions and illustrations contained in catalogues, price lists and other advertising of Verity
Systems are intended merely to present a general idea of the goods described therein and shall not
form part of the Contract. Whilst every effort is made to ensure that the latest specification is
available Verity Systems reserves the right to incorporate new features and to supply products which
may not be strictly in accordance with the specification agreed upon, provided that any changes in
specification shall not materially prejudice the performance of the goods.