WFP Terms and Conditions
WFP Terms and Conditions
2019)
1 ACCEPTANCE OF PURCHASE ORDER AND CONTRACTUAL 6.1 The goods are of the quality, quantity and description
TERMS AND CONDITIONS required under the Purchase Order and are fit for the
purposes for which such goods are ordinarily used and
Acceptance of this Purchase Order by the Vendor shall effect a
for the purposes expressly made known to the Vendor
contract between the Parties. The rights and obligations of the
by WFP;
Parties shall be governed solely by the terms and conditions of
this Purchase Order, which shall include the United Nations 6.2 The goods are securely contained, packaged and
General Conditions of Contract (UNGCC) De Minimis Field marked, taking into consideration the mode(s) of
Contracts, a copy of which is incorporated by reference into this shipment, in a manner so as to protect the goods during
Purchase Order and may be found on the website of the United delivery to their final destination;
Nations Procurement Division
6.3 The goods are free from any right of claim by any third-
(https://www.un.org/Depts/ptd/sites/www.un.org.Depts.ptd/file
party, including claims of infringement of any
s/files/attachment/page/pdf/general_condition_field_contracts.
pdf) and agreed attachments, if any (hereinafter collectively intellectual property rights, including, but not limited
referred to as “this Purchase Order” or “PO”). The Parties agree to, patents, copyright and trade secrets;
the UNGCC shall apply, with the exception of Article 4 on 6.4 The goods are new and unused, of current manufacture
Subcontracting, and form an integral part of this Purchase and are free from defects in design, workmanship and
Order. materials;
This Purchase Order may only be accepted by the Vendor’s 6.5 All warranties will remain fully valid following any
signing and returning an acknowledgment copy of it or by delivery of the goods and for a period of not less than
timely delivery of the goods and/or service as herein specified. one (1) year following acceptance of the goods by WFP
in accordance with the Purchase Order;
No additional or inconsistent provisions proposed by the During any period in which the Vendor’s warranties are
Vendor shall bind WFP unless agreed to in writing by a duly effective, upon notice by WFP that the goods do not conform
authorized official of the United Nations. to the requirements of the Purchase Order, the Vendor shall
promptly and at its own expense correct such non-conformities
2 DELIVERY TIME or, in case of its inability to do so, replace the defective goods
The Vendor shall deliver the goods or services within the ‘Date with goods of the same or better quality or, at its own cost,
Due’ stated on this Purchase Order. remove the defective goods and fully reimburse WFP for the
purchase price paid for the defective goods.
3 PAYMENT 7 INSPECTION
Payment by WFP does not imply acceptance of the goods nor If the Purchase Order provides that the goods may be inspected
any related work or services under the Purchase Order. Unless prior to delivery, the Vendor shall notify WFP when the goods
otherwise provided in the Purchase Order, WFP shall make are ready for pre-delivery inspection. Notwithstanding any pre-
payment within 30 days of receipt of the Vendor’s invoice for delivery inspection, WFP or its designated inspection agents
the goods or services, proof of dispatch and any other may also inspect the goods upon delivery in order to confirm
documents specified in the Purchase Order. Payment against that the goods conform to applicable specifications or other
the invoice referred to above will reflect any discount shown requirements of the Purchase Order. All reasonable facilities
under the payment terms of the Purchase Order, provided and assistance, including, but not limited to, access to drawings
payment is made within the period required by such payment and production data, shall be furnished to the United Nations
terms. The Vendor shall submit one invoice in respect of the or its designated inspection agents at no charge therefor.
Purchase Order, and such invoice must indicate the Purchase Neither the carrying out of any inspections of the goods nor any
Order identification number. The prices shown in the Purchase failure to undertake any such inspections shall relieve the
Order may not be increased except by express, written Vendor of any of its warranties or the performance of any
agreement of WFP. obligations under the Purchase Order.
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WFP PURCHASE ORDER TERMS AND CONDITIONS (NON-FOOD PURCHASES) (01.03.2019)
8.4 require the Vendor to ship at its own expense, via zero tolerance for Fraudulent, Corrupt, Collusive,
premium means, to meet the delivery schedule; Coercive and/or Obstructive Practices (as such terms
are defined below).
8.5 impose liquidated damages.
13.2 In particular, and without limitation, the Vendor
Acceptance of goods delivered late shall not be deemed a
represents and warrants to WFP that it has not, and it
waiver of WFP's rights to hold the Vendor liable for any loss
shall not, at any time:
and/or damage resulting there from, nor shall it act as a
modification of the Vendor's obligation to make future 13.2.1 perform any act or omit to perform any act,
deliveries in accordance with the delivery schedule. including any misrepresentation, in order to
knowingly mislead, or attempt to mislead, WFP
9 REMEDIES FOR LATE DELIVERY AND/OR LATE and/or any other party to obtain a financial or
PERFORMANCE other advantage or to avoid any obligation to
benefit the perpetrator or a related party
In case of late delivery of goods and/or the services, WFP shall
(“Fraudulent Practice”);
be entitled, without prejudice to any other rights or remedies,
to deduct liquidated damages from monies due to the vendor, 13.2.2 offer, give, receive or solicit, directly or indirectly,
equivalent to 0.1 percent (0.1%) of the price of the or attempt to offer, give, receive or solicit, directly
goods/service per day of delay, up to a maximum of ten percent or indirectly, anything of value to improperly
(10%) of the price of the goods/service. influence the actions of WFP and/or any other
party (“Corrupt Practice”);
The Vendor hereby agrees that the payment obligations set
forth in this clause are reasonable in light of the anticipated 13.2.3 enter into any arrangements with any other party
harm and the difficulty of estimation or calculation of actual or parties that are designed to achieve an improper
damages and represent a genuine pre-estimate of WFP's loss. purpose, including but not limited to improperly
The Vendor hereby waives the right to contest any such influencing the actions of WFP and/or any other
payment as void or unenforceable, as amounting to a penalty party (“Collusive Practice”);
or otherwise. 13.2.4 impair or harm, or threaten to impair or harm,
directly or indirectly, any party or the property of
10 TITLE RIGHTS the party to influence improperly the actions of a
Unless otherwise expressly provided in the Purchase Order, party (“Coercive Practice”);
title in and to the goods shall pass from the Vendor to WFP 13.2.5 deliberately destroy, falsify, alter or conceal
upon delivery of the goods and their acceptance by WFP in evidence material to the investigation or make
accordance with the requirements of the Purchase Order. false statements to investigators in order to
materially impede a duly authorized investigation
11 TERMINATION FOR CONVENIENCE into allegations of corrupt, fraudulent, coercive or
WFP may terminate the Purchase Order, in whole or in part, collusive practice; and/or threaten, harass or
upon 30 days’ notice to the Vendor. Upon receipt of notice of intimidate any party to prevent it from disclosing
termination, the Vendor shall take immediate steps to bring the its knowledge of matters relevant to the
work and services to a close in a prompt and orderly manner, investigation or from pursuing the investigation; or
shall reduce expenses to a minimum and shall not undertake engage in any act intended to materially impede
any forward commitment from the date of receipt of notice of the exercise of WFP’s contractual rights of access
termination. In the event of Termination for Convenience, no to information (“Obstructive Practice”, and
payment shall be due from WFP to the Vendor except for work together with Fraudulent, Corrupt, Collusive and
and services satisfactorily performed prior to termination, for Coercive practices, “Prohibited Practices”).
expenses necessary for the prompt and orderly termination of 13.3 The Vendor shall communicate the Policy to its officers,
the work and for the cost of such necessary work as WFP may employees, contractors, subcontractors and agents
request the Vendor to complete. and shall take all reasonable measures to ensure that
such persons do not engage in Prohibited Practices. The
12 CHANGES Vendor shall include this model clause in its
WFP may, at any time, by written instructions make changes agreements with any subcontractors and/or other
within the general scope of the Purchase Order. If any such agents which are in any way involved in the
change causes an increase or decrease in the price of or the implementation of any project funded by the
time required for performance pursuant to the Purchase Order, Purchaser.
an equitable adjustment shall be made in the order price, or 13.4 The Vendor shall promptly disclose to WFP any actual,
delivery schedule, or both and the Purchase Order shall either apparent, potential or attempted Prohibited Practice
be amended or terminated and reissued accordingly. No that the Vendor becomes aware of. To that end, the
notification of or change in the terms of the Purchase Order Vendor shall fully cooperate, and shall take all
shall be valid or enforceable against WFP unless it is in writing reasonable steps to ensure that its officers, employees,
and signed by a duly authorized official of WFP. contractors, subcontractors and agents fully cooperate,
with any investigation or review of Prohibited Practices
13 ANTI-FRAUD, ANTI-CORRUPTION POLICY by WFP, including by allowing WFP to access and
13.1 The Vendor acknowledges and agrees that, in inspect its premises as well as any records, documents
accordance with WFP’s Anti-Fraud and Anti-Corruption and any other relevant information, including financial,
Policy (WFP/EB.A/2015/5-E/1) (“the Policy”), WFP has electronic and IT records, relevant to its contractual
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WFP PURCHASE ORDER TERMS AND CONDITIONS (NON-FOOD PURCHASES) (01.03.2019)
relationship with WFP, including allowing WFP to take to the execution of the present Purchase Order, directly or
copies of any such records, documents or information; through common third parties, that puts it in a position to
and influence the contract of another related vendor or
subcontractor, or the decisions of WFP; or
13.5 The Vendor expressly acknowledges and agrees that
(f) The Vendor participates in another related contract either
any breach of this clause by the Vendor or by any of its
individually or as a partner in a joint venture or any similar
officers, employees, contractors, subcontractors or
partnership; or
agents, constitutes a material breach of this Purchase
(g) The Vendor has participated, directly or indirectly, in the
Order, which entitles WFP to immediately terminate
preparation of the Specifications, Scope of Work or Terms
this Purchase Order without incurring liability to the
of Reference included in the solicitation documents
Vendor in such regard;
provided by WFP, where applicable; or
13.6 Furthermore, the Vendor expressly acknowledges and
agrees that, in the event that WFP were to determine The Vendor shall immediately notify WFP if any conflict of
through an investigation or otherwise that a Prohibited interest arises or appears likely to arise during the duration of
Practice occurred, WFP shall have, in addition to its the Purchase Order and shall make full disclosure of all relevant
right to immediately terminate the Purchase Order, the information relating to the conflict.
rights to: (i) apply and enforce the relevant reasonable
sanctions in accordance with WFP internal regulations, Without prejudice to any other rights or remedies it may
rules, procedures, practices, policies and guidelines, possess, WFP may immediately terminate this Purchase Order
including referral of the matter to national authorities if the Vendor, in the reasonable judgement of WFP, has a
when appropriate; and (ii) recover all losses, financial conflict of interest.
or otherwise, suffered by WFP in connection with such
Prohibited Practices. 15 SUBCONTRACTING
14 CONFLICT OF INTEREST The Vendor shall be solely and fully responsible for all services
and obligations performed by its subcontractors. The terms of
The Vendor warrants that, at the time of accepting this any subcontract shall be consistent with the terms and
Purchase Order, no conflict of interest exists or is likely to arise conditions of the Purchase Order.
in the performance of its obligations under this PO, other than
those situations it has disclosed to WFP during the solicitation The Vendor shall ensure that all of its subcontractors (whether
process. an individual or legal entity) are checked and cleared against
the latest available “Consolidated United Nations Security
A conflict of interest shall arise when, in WFP’s sole judgement, Council (UNSC) Sanctions List” which can be accessed on the
the Vendor could benefit or appear to benefit, directly or UNSC’s website.
indirectly, at any stage in the Purchase Order from a
relationship or arrangement of whatever nature: The Vendor represents that none of its subcontractors
(whether an individual or legal entity) is subject to any sanction
- with an official or non-staff personnel of WFP, or; or suspension imposed and notified by WFP as a consequence
- with a related vendor or subcontractor who provides to of any prohibited practices as defined in the Anti-Fraud and
WFP goods and/or services that are directly or indirectly Anti-Corruption Clause, a non-performance or defective
related to the execution of the present Purchase Order. performance in a contract with WFP, or any unresolved dispute
or claim with WFP.
The following is a non-exhaustive list of scenarios which might
constitute conflict of interest and which the Vendor must The Vendor expressly acknowledges and agrees that any
disclose to WFP: breach of this clause by the Vendor or by any of its
subcontractors constitutes a material breach of the Purchase
(a) the Vendor has any kind of interest or ties with any WFP Order, which entitles WFP to immediately terminate the PO
official or non-staff personnel of WFP. without incurring any liability whatsoever to the Vendor as a
(b) the Vendor directly or indirectly controls, is controlled by, result.
or is under common control with, another related vendor
or subcontractor who provides to WFP goods and/or In addition to its right to immediately terminate the Purchase
services that are directly or indirectly related to the Order along with any other rights available under this PO, WFP
execution of the present Purchase Order; or shall have the right to:
(c) the Vendor receives or provides any direct or indirect
payment from or to another related vendor or (i) apply and enforce the relevant sanctions in accordance
subcontractor who provides to WFP goods and/or services with WFP internal regulations, rules, procedures,
that are directly or indirectly related to the execution of practices, policies and guidelines, including referral of the
the present Purchase Order; or matter to national authorities where appropriate; and
(d) the Vendor shares key managers with another related (ii) recover all losses, financial or otherwise.
Vendor or subcontractor who provides to WFP goods
and/or services that are directly or indirectly related to the
execution of the present Purchase Order; or
(e) the Vendor, including its key employees, has a
relationship, of whatever nature, with another related
vendor, including its key employees, who provides to WFP
goods and/or services that are directly or indirectly related
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UNITED NATIONS NATIONS UNIES
1. LEGAL STATUS OF THE PARTIES: The Contractor shall be considered as having the legal status of an independent
contractor vis-à-vis the United Nations. The Contractor’s personnel and sub-contractors shall not be considered in any
respect as being the employees or agents of the United Nations.
2. RESPONSIBILITY FOR EMPLOYEES: The Contractor shall be responsible for the professional and technical
competence of its employees and will select, for work under this Contract, reliable individuals who will perform
effectively in the implementation of this Contract, respect the local customs, and conform to a high standard of moral
and ethical conduct.
3. ASSIGNMENT: The Contractor shall not assign, transfer, pledge or make other disposition of this Contract or any part
thereof, or any of the Contractor's rights, claims or obligations under this Contract except with the prior written consent
of the United Nations.
4. SUBCONTRACTING: In the event the Contractor requires the services of sub-contractors, the Contractor shall obtain
the prior written approval and clearance of the United Nations for all sub-contractors. The approval of the United
Nations of a sub-contractor shall not relieve the Contractor of any of its obligations under this Contract. The terms of
any sub-contract shall be subject to and conform with the provisions of this Contract.
5. INDEMNIFICATION: The Contractor shall indemnify, hold and save harmless, and defend, at its own expense, the
United Nations, its officials, agents, servants and employees from and against all suits, claims, demands, and liability of
any nature or kind, including their costs and expenses, arising out of acts or omissions of the Contractor, or the
Contractor’s employees, officers, agents or sub-contractors, in the performance of this Contract. This provision shall
extend, inter alia, to claims and liability in the nature of worker’s compensation, products liability and liability arising
out of the use of patented inventions or devices, copyrighted material or other intellectual property by the Contractor, its
employees, officers, agents, servants or sub-contractors. The obligations under this Article do not lapse upon termination
of this Contract.
6. INSURANCE AND LIABILITY:
6.1 The Contractor shall provide and thereafter maintain insurance against all risks in respect of its property and
any equipment used for the execution of this Contract.
6.2 The Contractor shall provide and thereafter maintain all appropriate workmen's compensation insurance, or its
equivalent, with respect to its employees to cover claims for personal injury or death in connection with this
Contract.
6.3 The Contractor shall also provide and thereafter maintain liability insurance in an adequate amount to cover
third party claims for death or bodily injury, or loss of or damage to property, arising from or in connection
with the provision of services under this Contract or the operation of any vehicles, boats, airplanes or other
equipment owned or leased by the Contractor or its agents, servants, employees or sub-contractors performing
work or services in connection with this Contract.
6.4 Except for the workmen's compensation insurance, the insurance policies under this Article shall:
6.4.1 Name the United Nations as additional insured;
6.4.2 Include a waiver of subrogation of the Contractor's rights to the insurance carrier against the
United Nations;
6.4.3 Provide that the United Nations shall receive thirty (30) days written notice from the insurers prior
to any cancellation or change of coverage.
6.5 The Contractor shall, upon request, provide the United Nations with satisfactory evidence of the insurance
required under this Article 6.
7. ENCUMBRANCES AND LIENS: The Contractor shall not cause or permit any lien, attachment or other encumbrance
by any person to be placed on file or to remain on file in any public office or on file with the United Nations against any
monies due to the Contractor or that may become due for any work done or against any goods supplied or materials
furnished under the Contract, or by reason of any other claim or demand against the Contractor or the United Nations.
8. EQUIPMENT FURNISHED BY THE UNITED NATIONS TO THE CONTRACTOR: Title to any equipment and
supplies that may be furnished by the United Nations to the Contractor for the performance of any obligations under the
Contract shall rest with the United Nations, and any such equipment shall be returned to the United Nations at the
conclusion of the Contract or when no longer needed by the Contractor. Such equipment, when returned to the United
Nations, shall be in the same condition as when delivered to the Contractor, subject to normal wear and tear, and the
Contractor shall be liable to compensate the United Nations for the actual costs of any loss of, damage to, or degradation
of the equipment that is beyond normal wear and tear.
9. COPYRIGHT, PATENTS AND OTHER PROPRIETARY RIGHTS:
9.1 Except as is otherwise expressly provided in writing in the Contract, the United Nations shall be entitled to all
intellectual property and other proprietary rights including, but not limited to, patents, copyrights, and
trademarks, with regard to products, processes, inventions, ideas, know-how, or documents and other
materials which the Contractor has developed for the United Nations under the Contract and which bear a
direct relation to or are produced or prepared or collected in consequence of, or during the course of, the
performance of the Contract. The Contractor acknowledges and agrees that such products, documents and
other materials constitute works made for hire for the United Nations.
9.2 To the extent that any such intellectual property or other proprietary rights consist of any intellectual property
or other proprietary rights of the Contractor: (i) that pre-existed the performance by the Contractor of its
obligations under the Contract, or (ii) that the Contractor may develop or acquire, or may have developed or
acquired, independently of the performance of its obligations under the Contract, the United Nations does not
and shall not claim any ownership interest thereto, and the Contractor grants to the United Nations a perpetual
license to use such intellectual property or other proprietary right solely for the purposes of and in accordance
with the requirements of the Contract.
9.3 At the request of the United Nations, the Contractor shall take all necessary steps, execute all necessary
documents and generally assist in securing such proprietary rights and transferring or licensing them to the
United Nations in compliance with the requirements of the applicable law and of the Contract.
9.4 Subject to the foregoing provisions, all maps, drawings, photographs, mosaics, plans, reports, estimates,
recommendations, documents, and all other data compiled by or received by the Contractor under the Contract
shall be the property of the United Nations, shall be made available for use or inspection by the United
Nations at reasonable times and in reasonable places, shall be treated as confidential, and shall be delivered
only to United Nations authorized officials on completion of work under the Contract.
10. PUBLICITY, AND USE OF THE NAME, EMBLEM OR OFFICIAL SEAL OF THE UNITED NATIONS: The
Contractor shall not advertise or otherwise make public for purposes of commercial advantage or goodwill that it has a
contractual relationship with the United Nations, nor shall the Contractor, in any manner whatsoever use the name,
emblem or official seal of the United Nations, or any abbreviation of the name of the United Nations in connection with
its business or otherwise without the written permission the United Nations.
11. CONFIDENTIAL NATURE OF DOCUMENTS AND INFORMATION: Information and data that is considered
proprietary by either Party or that is delivered or disclosed by one Party (“Discloser”) to the other Party (“Recipient”)
during the course of performance of the Contract, and that is designated as confidential (“Information”), shall be held in
confidence by that Party and shall be handled as follows:
11.1 The Recipient shall:
11.1.1 use the same care and discretion to avoid disclosure, publication or dissemination of the
Discloser’s Information as it uses with its own similar Information that it does not wish to
disclose, publish or disseminate; and,
11.1.2 use the Discloser’s Information solely for the purpose for which it was disclosed.
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UNITED NATIONS NATIONS UNIES
11.2 Provided that the Recipient has a written agreement with the following persons or entities requiring them to
treat the Information confidential in accordance with the Contract and this Article 11, the Recipient may
disclose Information to:
11.2.1 any other party with the Discloser’s prior written consent; and,
11.2.2 the Recipient’s employees, officials, representatives and agents who have a need to know such
Information for purposes of performing obligations under the Contract, and employees officials,
representatives and agents of any legal entity that it controls, controls it, or with which it is under
common control, who have a need to know such Information for purposes of performing
obligations under the Contract, provided that, for these purposes a controlled legal entity means:
11.2.2.1 a corporate entity in which the Party owns or otherwise controls, whether directly
or indirectly, over fifty percent (50%) of voting shares thereof; or,
11.2.2.2 any entity over which the Party exercises effective managerial control; or,
11.2.2.3 for the United Nations, a principal or subsidiary organ of the United Nations
established in accordance with the Charter of the United Nations.
11.3 The Contractor may disclose Information to the extent required by law, provided that, subject to and without
any waiver of the privileges and immunities of the United Nations, the Contractor will give the United Nations
sufficient prior notice of a request for the disclosure of Information in order to allow the United Nations to
have a reasonable opportunity to take protective measures or such other action as may be appropriate before
any such disclosure is made.
11.4 The United Nations may disclose Information to the extent as required pursuant to the Charter of the United
Nations, or pursuant to resolutions or regulations of the General Assembly or rules promulgated thereunder.
11.5 The Recipient shall not be precluded from disclosing Information that is obtained by the Recipient from a
third party without restriction, is disclosed by the Discloser to a third party without any obligation of
confidentiality, is previously known by the Recipient, or at any time is developed by the Recipient completely
independently of any disclosures hereunder.
11.6 These obligations and restrictions of confidentiality shall be effective during the term of the Contract,
including any extension thereof, and, unless otherwise provided in the Contract, shall remain effective
following any termination of the Contract.
12. FORCE MAJEURE; OTHER CHANGES IN CONDITIONS:
12.1 In the event of and as soon as possible after the occurrence of any cause constituting force majeure, the
affected Party shall give notice and full particulars in writing to the other Party, of such occurrence or cause if
the affected Party is thereby rendered unable, wholly or in part, to perform its obligations and meet its
responsibilities under the Contract. The affected Party shall also notify the other Party of any other changes in
condition or the occurrence of any event which interferes or threatens to interfere with its performance of the
Contract. Not more than fifteen (15) days following the provision of such notice of force majeure or other
changes in condition or occurrence, the affected Party shall also submit a statement to the other Party of
estimated expenditures that will likely be incurred for the duration of the change in condition or the event of
force majeure. On receipt of the notice or notices required hereunder, the Party not affected by the occurrence
of a cause constituting force majeure shall take such action as it reasonably considers to be appropriate or
necessary in the circumstances, including the granting to the affected Party of a reasonable extension of time
in which to perform any obligations under the Contract.
12.2 If the Contractor is rendered unable, wholly or in part, by reason of force majeure to perform its obligations
and meet its responsibilities under the Contract, the United Nations shall have the right to suspend or terminate
the Contract on the same terms and conditions as are provided for in Article 13, “Termination,” except that the
period of notice shall be seven (7) days instead of thirty (30) days. In any case, the United Nations shall be
entitled to consider the Contractor permanently unable to perform its obligations under the Contract in case the
Contractor is unable to perform its obligations, wholly or in part, by reason of force majeure for any period in
excess of ninety (90) days.
12.3 Force majeure as used herein means any unforeseeable and irresistible act of nature, any act of war (whether
declared or not), invasion, revolution, insurrection, terrorism, or any other acts of a similar nature or force,
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UNITED NATIONS NATIONS UNIES
provided that such acts arise from causes beyond the control and without the fault or negligence of the
Contractor. The Contractor acknowledges and agrees that, with respect to any obligations under the Contract
that the Contractor must perform in areas in which the United Nations is engaged in, preparing to engage in, or
disengaging from any peacekeeping, humanitarian or similar operations, any delays or failure to perform such
obligations arising from or relating to harsh conditions within such areas, or to any incidents of civil unrest
occurring in such areas, shall not, in and of itself, constitute force majeure under the Contract.
13. TERMINATION:
13.1 Either party may terminate this Contract for cause, in whole or in part, upon thirty (30) days notice, in writing,
to the other party. The initiation of arbitral proceedings in accordance with Article 16.2 (“Arbitration”),
below, shall not be deemed a termination of this Contract.
13.2 T he United Nations may terminate forthwith this Contract at any time should the mandate or the funding of
the Mission/Agency be curtailed or terminated, in which case the Contractor shall be reimbursed by the United
Nations for all reasonable costs incurred by the Contractor prior to receipt of the notice of termination.
13.3 In the event of any termination by the United Nations under this Article, no payment shall be due from the
United Nations to the Contractor except for work and services satisfactorily performed in conformity with the
express terms of this Contract.
13.4 Should the Contractor be adjudged bankrupt, or be liquidated or become insolvent, or should the Contractor
make an assignment for the benefit of its creditors, or should a Receiver be appointed on account of the
insolvency of the Contractor, the United Nations may, without prejudice to any other right or remedy it may
have under the terms of these conditions, terminate this Contract forthwith. The Contractor shall immediately
inform the UN of the occurrence of any of the above events.
13.5 The provisions of this Article 13 are without prejudice to any other rights or remedies of the United Nations
under the Contract or otherwise.
14. NON-WAIVER OF RIGHTS: The failure by either Party to exercise any rights available to it, whether under the
Contract or otherwise, shall not be deemed for any purposes to constitute a waiver by the other Party of any such right or
any remedy associated therewith, and shall not relieve the Parties of any of their obligations under the Contract.
15. NON-EXCLUSIVITY: Unless otherwise specified in the Contract, the United Nations shall have no obligation to
purchase any minimum quantities of goods or services from the Contractor, and the United Nations shall have no
limitation on its right to obtain goods or services of the same kind, quality and quantity described in the Contract, from
any other source at any time.
16. SETTLEMENT OF DISPUTES:
16.1 AMICABLE SETTLEMENT: The Parties shall use their best efforts to amicably settle any dispute,
controversy, or claim arising out of the Contract or the breach, termination, or invalidity thereof. Where the
Parties wish to seek such an amicable settlement through conciliation, the conciliation shall take place in
accordance with the Conciliation Rules then obtaining of the United Nations Commission on International
Trade Law (“UNCITRAL”), or according to such other procedure as may be agreed between the Parties in
writing.
16.2 ARBITRATION: Any dispute, controversy, or claim between the Parties arising out of the Contract or the
breach, termination, or invalidity thereof, unless settled amicably under Article 16.1, above, within sixty (60)
days after receipt by one Party of the other Party’s written request for such amicable settlement, shall be
referred by either Party to arbitration in accordance with the UNCITRAL Arbitration Rules then obtaining.
The decisions of the arbitral tribunal shall be based on general principles of international commercial law.
The arbitral tribunal shall be empowered to order the return or destruction of goods or any property, whether
tangible or intangible, or of any confidential information provided under the Contract, order the termination of
the Contract, or order that any other protective measures be taken with respect to the goods, services or any
other property, whether tangible or intangible, or of any confidential information provided under the Contract,
as appropriate, all in accordance with the authority of the arbitral tribunal pursuant to Article 26 (“Interim
measures”) and Article 34 (“Form and effect of the award”) of the UNCITRAL Arbitration Rules. The
arbitral tribunal shall have no authority to award punitive damages. In addition, unless otherwise expressly
provided in the Contract, the arbitral tribunal shall have no authority to award interest in excess of the London
Inter-Bank Offered Rate (“LIBOR”) then prevailing, and any such interest shall be simple interest only. The
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UNITED NATIONS NATIONS UNIES
Parties shall be bound by any arbitration award rendered as a result of such arbitration as the final adjudication
of any such dispute, controversy, or claim.
17. PRIVILEGES AND IMMUNITIES: Nothing in or relating to the Contract shall be deemed a waiver, express or
implied, of any of the privileges and immunities of the United Nations, including its subsidiary organs.
18. TAX EXEMPTION:
18.1 Article II, Section 7, of the Convention on the Privileges and Immunities of the United Nations provides, inter
alia, that the United Nations, including its subsidiary organs, is exempt from all direct taxes, except charges
for public utility services, and is exempt from customs restrictions, duties, and charges of a similar nature in
respect of articles imported or exported for its official use. In the event any governmental authority refuses to
recognize the exemptions of the United Nations from such taxes, restrictions, duties, or charges, the
Contractor shall immediately consult with the United Nations to determine a mutually acceptable procedure.
18.2 The Contractor authorizes the United Nations to deduct from the Contractor’s invoices any amount
representing such taxes, duties or charges, unless the Contractor has consulted with the United Nations before
the payment thereof and the United Nations has, in each instance, specifically authorized the Contractor to pay
such taxes, duties, or charges under written protest. In that event, the Contractor shall provide the United
Nations with written evidence that payment of such taxes, duties or charges has been made and appropriately
authorized, and the United Nations shall reimburse the Contractor for any such taxes, duties, or charges so
authorized by the United Nations and paid by the Contractor under written protest.
19. MODIFICATIONS: Pursuant to the Financial Regulations and Rules of the United Nations, only the Procurement
Division at New York possesses the authority to agree on behalf of the United Nations to any modification of or change
in this Contract, to a waiver of any of its provisions or to any additional contractual relationship of any kind with the
Contractor. Accordingly, no modification or change in this Contract shall be valid and enforceable against the United
Nations unless provided by an amendment to this Contract signed by the Contractor and the Chief or Deputy Chief of the
Procurement Division.
20. AUDITS AND INVESTIGATIONS:
20.1 Each invoice paid by the United Nations shall be subject to a post-payment audit by auditors, whether internal
or external, of the United Nations or by other authorized and qualified agents of the United Nations at any
time during the term of the Contract and for a period of three (3) years following the expiration or prior
termination of the Contract. The United Nations shall be entitled to a refund from the Contractor for any
amounts shown by such audits to have been paid by the United Nations other than in accordance with the
terms and conditions of the Contract.
20.2 The United Nations may conduct investigations relating to any aspect of the Contract or the award thereof, the
obligations performed under the Contract, and the operations of the Contractor generally relating to
performance of the Contract at any time during the term of the Contract and for a period of three (3) years
following the expiration or prior termination of the Contract.
20.3 The Contractor shall provide its full and timely cooperation with any such inspections, post-payment audits or
investigations. Such cooperation shall include, but shall not be limited to, the Contractor’s obligation to make
available its personnel and any relevant documentation for such purposes at reasonable times and on
reasonable conditions and to grant to the United Nations access to the Contractor’s premises at reasonable
times and on reasonable conditions in connection with such access to the Contractor’s personnel and relevant
documentation. The Contractor shall require its agents, including, but not limited to, the Contractor’s
attorneys, accountants or other advisers, to reasonably cooperate with any inspections, post-payment audits or
investigations carried out by the United Nations hereunder.
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UNITED NATIONS NATIONS UNIES
of the essential elements of the cause of action, or in the case of a breach of warranty, when tender of delivery
is made, except that, if a warranty extends to future performance of the goods or any process or system and the
discovery of the breach consequently must await the time when such goods or other process or system is ready
to perform in accordance with the requirements of the Contract, the cause of action accrues when such time of
future performance actually begins.
22. ESSENTIAL TERMS: The Contractor acknowledges and agrees that each of the provisions in Articles 23 to 28
hereof constitutes an essential term of the Contract and that any breach of any of these provisions shall entitle the
United Nations to terminate the Contract or any other contract with the United Nations immediately upon notice to
the Contractor, without any liability for termination charges or any other liability of any kind.
23. SOURCE OF INSTRUCTIONS: The Contractor shall neither seek nor accept instructions from any authority external
to the United Nations in connection with the performance of its obligations under the Contract. Should any authority
external to the United Nations seek to impose any instructions concerning or restrictions on the Contractor’s performance
under the Contract, the Contractor shall promptly notify the United Nations and provide all reasonable assistance
required by the United Nations. The Contractor shall not take any action in respect of the performance of its obligations
under the Contract that may adversely affect the interests of the United Nations, and the Contractor shall perform its
obligations under the Contract with the fullest regard to the interests of the United Nations.
24. OFFICIALS NOT TO BENEFIT: The Contractor warrants that it has not and shall not offer to any representative,
official, employee, or other agent of the United Nations any direct or indirect benefit arising from or related to the
performance of the Contract or of any other contract with the United Nations or the award thereof or for any other
purpose intended to gain an advantage for the Contractor.
25. OBSERVANCE OF THE LAW: The Contractor shall comply with all laws, ordinances, rules, and regulations bearing
upon the performance of its obligations under the Contract. In addition, the Contractor shall maintain compliance with
all obligations relating to its registration as a qualified vendor of goods or services to the United Nations, as such
obligations are set forth in the United Nations vendor registration procedures.
26. CHILD LABOR: The Contractor represents and warrants that neither it, its parent entities (if any), nor any of the
Contractor’s subsidiary or affiliated entities (if any) is engaged in any practice inconsistent with the rights set forth in the
Convention on the Rights of the Child, including Article 32 thereof, which, inter alia, requires that a child shall be
protected from performing any work that is likely to be hazardous or to interfere with the child’s education, or to be
harmful to the child’s health or physical, mental, spiritual, moral, or social development.
27. MINES: The Contractor represents and warrants that neither it, its parent entities (if any), nor any of the Contractor’s
subsidiaries or affiliated entities (if any) is engaged in the sale or manufacture of anti-personnel mines or components
utilized in the manufacture of anti-personnel mines.
28. SEXUAL EXPLOITATION:
28.1 The Contractor shall take all appropriate measures to prevent sexual exploitation or abuse of anyone by its
employees or any other persons engaged and controlled by the Contractor to perform any services under the
Contract. For these purposes, sexual activity with any person less than eighteen years of age, regardless of
any laws relating to consent, shall constitute the sexual exploitation and abuse of such person. In addition, the
Contractor shall refrain from, and shall take all reasonable and appropriate measures to prohibit its employees
or other persons engaged and controlled by it from exchanging any money, goods, services, or other things of
value, for sexual favors or activities, or from engaging any sexual activities that are exploitive or degrading to
any person.
28.2 The United Nations shall not apply the foregoing standard relating to age in any case in which the Contractor’s
personnel or any other person who may be engaged by the Contractor to perform any services under the
Contract is married to the person less than the age of eighteen years with whom sexual activity has occurred
and in which such marriage is recognized as valid under the laws of the country of citizenship of such
Contractor’s personnel or such other person who may be engaged by the Contractor to perform any services
under the Contract.
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