What Should Be Noted When Purchasing A Second-hand Rotary Drilling Rig Contract? These Five Clauses Must Not Be Omitted

In the transaction of second-hand rotary drilling RIGS, the contract is the key to safeguarding the rights and interests of both parties. A standardized contract can avoid risks such as inconsistent equipment information and quality disputes. In particular, the following terms need to be clearly and specifically detailed to guarantee the transaction.

1. Equipment Information Clause: Core information such as equipment model, factory serial number, and manufacturer must be indicated, along with a copy of the original invoice or property rights certificate. Make sure it is an original factory machine and whether there is any major maintenance history to avoid "refurbished machines passing off as original factory machines".

2. Payment and Delivery terms: Specify the installment payment nodes (such as 30% advance payment and 60% payment after acceptance), and specify the penalty for late payment. Clearly define the delivery time, location and transportation responsibility. A third-party test report must be attached at the time of acceptance.

3. Quality Assurance Clause: The seller shall commit that the equipment is unmortgaged and free from property rights disputes, and that core components (such as engines and hydraulic pumps) have not been replaced with non-original factory parts. Agree on a warranty period of 30 to 90 days, clearly define the scope of the warranty and the responsibility for maintenance.

4. Breach of Contract Clause: If the equipment does not match the description, the buyer has the right to terminate the contract and demand double the return of the deposit. If the seller delays delivery for more than 15 days, they shall pay a penalty of 0.5% of the total price of the equipment for each day of delay.

5. Dispute Resolution clause: Priority should be given to litigation in the court where the equipment is located, or it can be agreed that the dispute be adjudicated by an industry arbitration institution. Make it clear that the litigation costs and legal fees shall be borne by the party in breach to avoid disputes over the cost of rights protection.

6. Additional Terms: Specify the list and status of the equipment's accompanying accessories (such as drilling tools and spare parts); Agree on subsequent obligations such as transfer of ownership and invoice issuance to prevent the seller from shirking responsibility afterwards.

In conclusion, the contract for second-hand rotary drilling RIGS requires meticulous consideration. The above-mentioned terms can verify the authenticity of the equipment, clarify the division of rights and responsibilities, and reduce transaction risks. It is recommended that the contract be reviewed by a professional lawyer before signing to add a "safety lock" to the second-hand equipment transaction.