HOD# 964 LIC# HTG.0396438-S1
CONNECTICUT PROPANE & PETROLEUM (hereinafter called the "Seller") hereby agrees to sell to
I hereby agree to purchase the requirements of propane and related equipment upon the following terms and conditions:
1. This Agreement shall continue in effect for a period of three years.
2. from year to year, unless certified written notice is given by either party to the other party, at least six months prior to the expiration of said original term or the expiration of any succeeding year, of the termination of this Agreement upon such expiration date. The initial term of this agreement shall be from the date hereof as specified, or the date of first delivery of product, whichever is later.
3. NOTE: Product type defines actual product purchased. Method of Delivery shall be either performed by the Sellers bulk delivery service and supported with an associated bulk meter delivery ticket or delivery shall be-performed via the Sellers cylinder method of delivery which will include an aggregate amount of propane as determined by actual cylinder size. Unit price shall mean either price per gallon as provided by Sellers bulk method of delivery or cylinder price (aggregate) as provided by seller’s cylinder method of delivery.
4. Seller as part of this agreement shall provide the following equipment on a lease basis only to the Buyer. Title to all equipment listed below shall remain under the title of the Seller:
The Seller may from time to time reserve the right to adjust the basic equipment charge as the Seller deems necessary. If a basic equipment charge is not designated on the effective date of this agreement, the Buyer agrees to pay a future basic equipment charge if assessed by the Seller. The Buyer understands that the Seller has a certain sales expectation based on Buyers representation at the time of original agreement based on typical gas usage for the Buyers represented gas application. If the Buyers gas usage falls below the Sellers expectation, which is usage of double capacity of the tank size, then a basic equipment charge will be assessed by the Seller pursuant to its currently published basic equipment charge schedule, to adequately offset the Sellers investment in fixed leased equipment as described above.
Additionally, the Buyer acknowledges that no other party, individual, company, corporation, etc. may tamper with, remove, or provide fuel delivery service to the equipment listed above unless written authorization is given by Seller to the Buyer to perform any or all of these aforementioned services.
The equipment described herein is the property of Seller, and rented or leased only for the duration of this Service Agreement. If for any reason, the above mentioned containers and/or equipment has to be dismantled upon expiration of this Agreement, said Seller has the right to enter Buyer's location during Seller's regular business hours to remove equipment or cylinders and will not be liable for any law suit and damages while being removed and/or dismantled by Seller. It is also understood that while the above-mentioned equipment is in active service by the Buyer, the Buyer is responsible for any damages or loss of Seller's leased equipment.
5. Determination of the suitability of the Propane furnished hereunder at the specification(s) set forth herein for the use contemplated by Buyer is the sole responsibility of Buyer. Seller shall have no responsibility in connection therewith.
Buyer acknowledges that there are hazards associated with the use of Propane, that it understands such hazards, and that it is the responsibility of Buyer to warn and protect its persons or employees and others exposed to such hazards through Buyer's storage and use of Propane. Buyer assumes all risk and liability for loss, damages or injury to persons or to property of Buyer or others arising out of the presence or use of Propane.
Seller's sole liability and Buyer's sole remedy for the non-delivery of Propane, or for the delivery of Propane not conforming to specification(s) shall be limited to the purchase price of the quantity of Propane not delivered or the purchase of the nonspecification (s) Propane delivered. Buyer recognizes that from time to time certain products may be in short supply. In said event the Seller will be given a reasonable time, not to exceed two weeks, to deliver the product to the Buyer during which time the Buyer will not purchase said product from another supplier. Seller shall not be liable in contract or tort for any other direct, special, indirect or consequential damages, including by way of limitation, loss of use, loss of work in process, down time or loss of profits.
6. Terms: Net cash COD day date of delivery. Customer may put a credit card on file for payment or complete a credit application. At such time, the buyer, if deemed credit worthy will be extended 30 days from the date of delivery to make payment. Failure to pay either for propane, equipment rental, or basic equipment charges results in the Seller's right to equipment or cylinders and cancellation of this bailment contract. Customer grants the Seller's representatives access to the cylinders, containers or equipment for removal during regular business hours of the Buyer or Seller. In the event the Buyer does not make payment as stated herein above, the Seller, at its option, may refuse to deliver further products to the buyer or require that further deliveries be on a C.O.D. basis, including rental charges in advance. In the event the Seller exercises either of said options the Buyer will still be bound by all other terms and conditions of this agreement.
7. Service charge at 1 1/2% per month must be paid on all charges made during one month and not paid by the last day of the following month.
8. Collection - if collection is necessary customer agrees to pay Seller's cost of collection including an attorney and/or collection agency.
9. The Seller from time to time may be required to change the unit price reflected in paragraph two of the agreement. These changes, whether as an increase or decrease, will be initiated by the Seller based on changes in cost of goods. (Sellers wholesale procurements for propane from producers and or brokers) and or operating costs which effect the Sellers operating margin. The Buyer acknowledges that the Seller offers goods and services through a competitive and freely operating market. Based on the dynamics of free market trade, the Seller agrees to always provide goods and services at a competitive price to the Buyer. In the event the Buyer concludes that the Seller's prices are not competitive and this conclusion is supported by a written quotation (reflecting unit price, F.O.B. point, rental, a lease and basic equipment charges) from a bona fide and established member of the Sellers industry, the Seller agrees to re-evaluate pricing to the Buyer within 15 days of receipt of documentation as previously described. If the Sellers prices are still considered by the Buyer to be uncompetitive after the Seller has re-evaluated pricing and presented it to the Buyer, then the Buyer is free to terminate its agreement with the Seller even though the life the agreement has not yet expired.
10. Sellers leased containers and equipment shall at all times remain and be the sole and exclusive property of the Seller and Buyer shall not have or obtain any property right therein. The Buyer also agrees that products purchased under this Agreement are for use by the Buyer and that nothing purchased under this Agreement will be resold while in the Seller's containers unless the Buyer is an authorized reselling agent of the Seller. The Buyer will not permit the refilling of any of the Seller's containers while in the possession of the Buyer with any propane or other gas product or material. The Seller at its option may waive the provision and/or provisions stated in this paragraph provided the Seller gives written prior permission for said provision and/or provisions to the Buyer.
11. The Seller at its option may arrange with an authorized Dealer of the Seller to fill the orders received from the Buyer pursuant to this agreement and to otherwise service the Buyer pursuant to this agreement.
12. Any excavation required is at the homeowner’s expense.
13. This Agreement is subject to delays and non-delivery caused by strikes, riots, war, fires, acts of God, accidents, govern-mental orders and regulations curtailment of or failure in obtaining, sufficient electrical power, lack of transportation or distributive facilities, and other similar or different contingencies beyond the reasonable control of the Seller.
14. At expiration or cancellation date of Agreement, cylinders, containers or equipment leased, loaned or rented must be returned (unless notified by Buyer in writing prior to 30 days) within 30 days or at Seller's option, Seller may charge the current Seller's published price list for any and all cylinders, containers or equipment not returned. Rental at current standard rates, if less than standard or dealer rates is applicable to all cylinders, containers, or equipment immediately after contract expiration or cancellation date. Seller agrees to credit customer for any product left in tank at the previously charged price per gallon. Credit will be made within 10 days from the time equipment has been picked up. There will be a $500.00 pick-up charge and additional $700.00 per hour fee for pump out of tank. Any excavation will be at the buyers expense unless otherwise noted in this contract.
15. Rental or Lease accruals must be paid until missing or non-returned cylinders, containers or equipment are paid in full at published prices. Rental or Lease accrual paid or not paid on missing or non-returned cylinders, containers, or equipment are not applicable to charges on cylinders, containers, or equipment not returned.
16. Customer grants Seller's personnel the right to remove Seller's cylinders, bulk containers and/or equipment from customer's property at any time for non-payment of Gas and/or Rental, Lease, or Demurrage charges.
17. The Buyer recognizes and acknowledges that the Seller has made a substantial investment to fulfill its obligations under
this agreement and therefore it is predicated on the Buyer fulfilling the full term of this agreement. At the Seller's option, in the event of sale or merger of the Buyer's business or residence before expiration of the full term of this agreement, it is the Buyer's responsibility to notify and transfer all terms and conditions of this agreement to the new owner or owners.
18. The Buyer agrees that they will not substitute any products including gases, liquid containers and related equipment identified in paragraph #2 above unless the Seller agrees to such substitution. In the event the Buyer discontinues the use of any particular product described in paragraph #2 above, they will forthwith notify the seller in writing by a certified letter within 60 days and will not replace said products with a like or similar product unless the seller so agrees. Any such change or replacement in product of a like or similar nature will be purchased through the seller under the same terms and conditions set forth herein (except as to price) so long as the seller can supply such like or similar products. The price of any such like or similar product will be set forth by the seller in accordance with current replacement value.
Upon termination of this agreement, the buyer shall return or make available for return, all equipment furnished on a lease basis during the life of the agreement, to the Seller. The leased equipment shall be returned or made available for return, immediately or at the Sellers convenience. The Buyer shall be responsible for damages to equipment which exceeds normal wear and tear and for any equipment not returned pursuant to the terms and conditions paragraph as set forth in the agreement. Seller will not be obligated to issue any credit for residual gas inventories returned unless the Buyer makes a written request for such credit within two weeks of these returned goods inventories. Seller, upon receipt of written request, will issue credit for gas inventories less the Sellers published equipment removal and gas inventory restocking charges. Any remaining credit will be first applied to the Buyers account and if a credit balance occurs, this balance will be reimbursed by check only to the Buyer.
19. All fuel deliveries of propane will be performed on an Automatic, Keep Full, Delivery Basis only. Will Call deliveries without authorization of the Seller, are not permitted. When performing deliveries, the seller may be required to utilize the buyer's driveway in order to access the propane storage facility. Seller will exercise caution when performing such deliveries and seller shall not be held responsible for driveway damages caused by insufficient base or pavement thickness not sufficient to support the gross vehicle weights of Seller's delivery vehicles. Seller shall be responsible for any driveway damage caused by Seller's negligence. Seller encourages Buyer to select a site for Seller's propane storage facility which will not require use of the Buyer's driveway when Seller performs its fuel deliveries. Buyer shall also maintain overhead vegetation and obstructions immediately adjacent to the Sellers path of travel in a manner so as to not cause vehicular interference which may cause property and or paint damage to Seller's vehicles. Seller reserves the right to suspend deliveries until overhead vegetation and obstructions are cleared in a manner as to not cause damage to Seller's delivery vehicles.