Jigs and Tools
Where tools. dies, moulds, patterns and/or jigs are prepared specially for a contract they will remain our property not withstanding that payments have been made in regard to them by the buyer directly or indirectly in whole or in part. We undertake for a period of TWO years from the completion of any quantity contract to maintain in working order or at our option to replace any such items which have failed or are incapable of production where this has arisen exclusively from any inherent defect or from fair wear and tear. At the end of any TWO year period without use we shall have the right to dispose of such items on giving the buyer THREE months notice in writing.
Payment for the tool shall be made: One third with order; one third on notification by us to the buyer that the tooling has been manufactured; one third on approval of prototypes.