Agreement to Purchase IP Phone System
This System Purchase and Maintenance Agreement is made on the ________________
(date) , between _____________________________ (Name of Company) , a corporation
organized and existing under the laws of the state of ______________, with its principal office
located at ____________________________________________________________________
_______________ (street address, city, state, zip code), referred to herein as Company , and
(Name of Customer), a corporation organized and existing under the laws of the state of
______________, with its principal office located at ___________________________________
____________________________________________ (street address, city, state, zip code) ,
referred to herein as Customer .
Whereas, Company desires to sell to Customer a IP Phone System (the System )
pursuant to this Agreement as well as maintain same pursuant to the warranty provisions set
forth herein; and
Whereas, Customer desires to purchase the System from Company and have Company
maintain the System pursuant said warranty provisions;
Now, therefore, for and in consideration of the mutual covenants contained in this
agreement, and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
1. The System. This Agreement pertains to the Equipment and Software, (the System )
described in Schedule A attached hereto and incorporated herein by this reference. The
System is to be installed at the Customer’s offices at __________________________________
____________________________________________ (street address, city, state, zip code) ,
hereinafter referred to as the Authorized Location .
2. Systems Installation.
A. Customer shall make available a certain location on its premises for installation
of the System in accordance with the sp ecifications set forth below and shall permit
access to such Authorized Location for Company’s personnel, which includes both
employees and subcontractors, to deliver the Equipment and Software required for
installation as well as install same.
B. Customer shall provide an equipment room that meets environmental and
electrical requirements for the installation of the telecommunications/data Equipment,
including but not limited to the following:
1. 20 ampere 120 volt AC isolated, dedicated circuit termination within five
(5) feet of the System service unit;
2. Conduits for commercial power wiring and outlets.
3. A satisfactory double receptacle;
C. Said Equipment Room must maintain room temperature ranging between 30-80
degrees Fahrenheit and relative humidity not exceeding 80% non-condensing. Said
Room must have a three (3) foot minimum clearance in front of the System service unit,
with secured access. Said Room must have access to "cold water ground" within 10 feet
of the System service unit.
D. Said Room shall not contain any "Hazardous Substances" (as defined below).
which violate applicable state, federal or local laws, rules or regulations. For the
purposes of this Agreement the terms Hazardous Substances shall include without
limitation: (i) oil, petroleum or other hydrocarbon derivatives, or products; (ii) hazardous
wastes, (iii) hazardous or trade substances or chemicals; (iv) fungicides, rodenticides or
insecticides; (v) asbestos; or (vi) urea formaldehyde.
3. Licenses and Permits
Customer shall be solely responsible for obtaining any and all licenses, permits and
other authorizations that may be necessary in connection with the installation, use or service of
the System. When necessary, Company agrees to coordinate service arrangements with the
telephone utility on behalf of Customer, but in no event shall Company be responsible for any
service or other charge assessed by the telephone utility, all such charges being Customer’s
sole responsibility. In the event the telephone utility fails to make available appropriate
interconnection and/or other utility sources on a timely basis, Company shall not be liable to
Customer in any way. Company shall be responsible for installation and maintenance service of
the System only with regard to the proper connection of the System to the telephone utility
network and shall not be responsible for any maintenance of problems which are part of the
telephone utility network or covered by the warranty provisions herein.
4 . Purchase Price and Payment Terms
Customer shall pay Company the sum of $___________ for the Equipment, Software
and Installation. Fifty Percent of said amount will be due upon execution of this Agreement and
the remainder will be due upon completion of the installation and the start up of the System.
Payment of all taxes shall be the responsibility of Customer whether this is considered a tax-
exempt transaction or not. There will be no charge for maintaining the System by Company, but
such maintenance is limited to the Warranty provisions herein. Installation shall be made on or
before ____________________ (date) .
5. Risk of Loss or Damage.
The System will be considered accepted by Customer upon installation at Customer's
facility. Except to the extent any loss or damage to the System and related documentation is
caused by defects in material or workmanship, Customer assumes the entire risk of loss or
damage to the System while it is on Customer’s premises or under its control whether or not
covered by insurance and no loss shall relieve Customer of its obligations under this
Agreement.
6. Purchase Money Security Interest
To secure performance of Customer's obligations under this Agreement, Customer
hereby grants Company a purchase money security interest in the System including all
equipment, additions, attachments and substitutions, until the total Purchase Price has been
paid. Customer agrees not to further encumber, sell or otherwise transfer the System without
the prior written consent of Company before the Payment Price is paid. Customer agrees to
execute any and all documents which Company may require to further evidence or continue this
security interest.
7. Remedies for Default
Upon default in payment or performance hereunder by Customer, Company, in addition
to any other remedies by which it is entitled, shall have all the rights and remedies of a secured
party under the _________________ (Name of State) ’s Uniform Commercial Code, including
but not limited to the following rights; (i) to declare all unpaid amounts hereunder immediately
due and payable, (ii) to take possession of and remove any part or all of the System: and (iii) to
render the System or any of its functions or features inoperable remotely or otherwise, without
any demand or notice, and without any court order or other process of law. Upon default, any
amounts owed to Company shall bear interest at _____ percent, or the highest rate allowed by
applicable law, whichever is less. Should it become necessary to enforce payment or
performance of Customer's obligations, Customer agrees to reimburse Company for all costs
and expenses, including reasonable attorney's and investigatory fees, incurred in connection
with such enforcement. If Customer breaches any payment obligation prior to installation of the
System, Company may withhold installation until Customer has cured such breach. If Customer
fails to cure, Company may retain any amounts already paid Company as liquidated damages.
8. Limitation of Warranties
Customer acknowledges that Company did not manufacture the System. Company does
represent that it has the right to and does extend to Customer the manufacturer's warranty with
respect to the System, as set forth In Schedule A .
9. Warranties
Company warrants that the System, when in good repair, properly adjusted and in the
hands of a competent operator, is capable of practical operating speeds and efficiency within
the specifications set forth in Schedule B , attached to and made a part of this Agreement.
Company further warrants the System to be free from defective material and workmanship and
agrees to furnish free of charge any part or parts necessary to make good any defect directly
traceable to a fault in material or workmanship of Company , provided that the claim for any such
defect is made within one year after erection of the System and provided the defective part or
parts are promptly returned to Company, freight prepaid by Customer. Equipment and
accessories not manufactured by are warranted only to the extent that they are warranted by
the manufacturers of the same. Company 's liability or warranty shall not exceed the amount of
the purchase price indicated above. THERE ARE NO OTHER WARRANTIES, EXPRESS OR
IMPLIED, EITHER OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE.
Customer agrees that there have been no representations upon which it relied other than those
set forth herein.
THIS WARRANTY, ALONG WITH THE MANUFACTURER'S WARRANTY, ARE PROVIDED TO
CUSTOMER IN LIEU OF ALL OTHER WARRANTIES. ALL OTHER WARRANTIES, WHETHER
EXPRESS, IMPLIED OR STATUTORY INCLUDING ANY IMPLIED WARRANTIES SUCH AS IMPLIED
WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-
INFRINGEMENT ARE DISCLAIMED. CUSTOMER’S SOLE AND EXCLUSIVE REMEDY IN THE
EVENT OF A BREACH OF ANY WARRANTY SHALL BE REPAIR OR REPLACEMENT OF THE
DEFECTIVE PORTION OF THE SYSTEM. COMPANY SHALL NOT IN ANY EVENT BE
RESPONSIBLE FOR ANY SPECIAL, EXEMPLARY, PUNITIVE, INDIRECT, MULTIPLE OR
CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO DAMAGES ARISING FROM
FRAUD OR LOST REVENUES OR PROFITS.
9. Limitation of Remedies
Customer agrees that the sole liability of Company by virtue of any warranty or
guarantee made by Company is, at Company 's option, either to make the equipment sold fulfills
the warranty, or to remove the same at the Company 's own expense, refunding payments
made. No warranty made by Company shall be binding on Company after one year from the
date of the original erection or installation of the System, and no liability for any special, indirect,
or consequential damages of any nature is assumed by or shall be imposed on Company based
upon its undertakings in this Agreement.
10. Payment of Taxes and other Charges
Customer agrees to pay promptly when due all taxes, assessments, and other public
charges that might be directly or indirectly levied, rated, charged upon, or measured by or arise
from the sale, transportation, delivery, use or consumption of the System, or otherwise upon this
transaction. If Customer fails to make payment of the same or to file any required return,
Company shall have the right, but not the duty, to file a return and to make payment of the tax
and the amount so paid shall then become immediately due and payable by Customer to
Company and shall be in addition to any and all other money due and payable under this
Agreement.
11. Transfer of Title
Company and Customer agree that title in and to the System shall remain in Company
until the full purchase price as provided in this Agreement shall be paid by Customer . Default by
the Customer in any of the terms of this Agreement shall give Company the right to take
immediate and unconditional possession of the System. Until payment in full, the System shall
remain personal property, regardless of its method or mode of attachment to realty, if any.
Notwithstanding the foregoing, Customer acknowledges and agrees that title to the software
and software related documentation belongs to the System’s manufacturer and that nothing
contained herein shall operate to transfer any ownership interest in the software and software
related documentation to Customer . Company warrants that it is an authorized licensee of the
owner of such Software and has the authority to assign the right to use such Software in
accordance with this Agreement.
12. Training
As part of the consideration for this sale, Company shall provide all necessary training
services for Customer's personnel to effect the operation of the System at no additional cost for
a period of one (1) year after the date of Installation. After one (1) year, Compan y will make
available to the Customer, training services in accordance with the Company’s then standard
practices and price schedule.
13. Indemnification
Customer hereby agrees to Indemnify, defend and hold Company harmless from and
against any claim, expense, liability, fee, line, penalty or damage arising from or related to any
breach of terms, conditions, or representations set forth In this Agreement. Additionally,
Company shall be permitted to suspend its performance under this Agreement without penalty if
it reasonably determines that Its performance of the terms set forth herein could violate any law,
rule or regulation or have an adverse impact on the health or safety of the environment, until It
receives written and/or financial assurances from Customer which are reasonably satisfactory to
Company.
14. Force Majeure
Company shall not be liable in any way for delay, non-delivery or default in shipment due
to labor disputes, transportation shortage, delays in receipt of material, priorities, fires,
accidents, and all other causes beyond the control of Company , affecting Company or its
suppliers. If Company , in its sole judgment, shall be prevented directly or indirectly, on account
of any cause beyond its control, from delivering the Equipment at the time specified or within
one month after the date of this Agreement, then Company shall have the right to terminate this
Agreement by notice in writing to Customer , which notice shall be accompanied by full refund of
all sums paid by Customer pursuant to this Agreement.
15. Severability
The invalidity of any portion of this Agreement will not and shall not be deemed to affect
the validity of any other provision. If any provision of this Agreement is held to be invalid, the
parties agree that the remaining provisions shall be deemed to be in full force and effect as if
they had been executed by both parties subsequent to the expungement of the invalid provision.
16. No Waiver
The failure of either party to this Agreement to insist upon the performance of any of the
terms and conditions of this Agreement, or the waiver of any breach of any of the terms and
conditions of this Agreement, shall not be construed as subsequently waiving any such terms
and conditions, but the same shall continue and remain in full force and effect as if no such
forbearance or waiver had occurred.
17. Governing Law
This Agreement shall be governed by, construed, and enforced in accordance with the
laws of the State of _____________.
18. Notices
Any notice provided for or concerning this Agreement shall be in writing and shall be
deemed sufficiently given when sent by certified or registered mail if sent to the respective
address of each party as set forth at the beginning of this Agreement.
19. Attorney’s Fees
In the event that any lawsuit is filed in relation to this Agreement, the unsuccessful party
in the action shall pay to the successful party, in addition to all the sums that either party may be
called on to pay, a reasonable sum for the successful party's attorney fees.
20. Mandatory Arbitration
Any dispute under this Agreement shall be required to be resolved by binding arbitration
of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one
arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall
arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration
Association then in force and effect.
21. Entire Agreement
This Agreement shall constitute the entire agreement between the parties and any prior
understanding or representation of any kind preceding the date of this Agreement shall not be
binding upon either party except to the extent incorporated in this Agreement.
22. Modification of Agreement
Any modification of this Agreement or additional obligation assumed by either party in
connection with this Agreement shall be binding only if placed in writing and signed by each
party or an authorized representative of each party.
23. Assignment of Rights
The rights of each party under this Agreement are personal to that party and may not be
assigned or transferred to any other person, firm, corporation, or other entity without the prior,
express, and written consent of the other party.
24. In this Agreement, any reference to a party includes that party's heirs, executors,
administrators, successors and assigns, singular includes plural and masculine includes
feminine.
WITNESS our signatures as of the day and date first above stated.
_________________________ __________________________
(Name of Company) (Name of Client)
By:______________________________ By:_____________________________
____________________________ ____________________________
(P rinted name & Office in Corporation) (P rinted name & Office in Corporation
____________________________ ____________________________
(Signature of Officer) (Signature of Officer)