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Section 3. Disclaimer of Warranties; Limitation of Liability. <br />3.1 TRANSFEREE HEREBY ACKNOWLEDGES RECEIPT OF THE EQUIPMENT <br />AND THAT TRANSFEREE HAS EXAMINED THE EQUIPMENT TO INSPECT ITS <br />CONDITION. THE TRANSFEREE ACKNOWLEDGES AND AGREES THAT THE <br />EQUIPMENT IS SOLD ON AN AS -IS AND WHERE IS WITH ALL FAULTS, WITH NO <br />GUARANTEES OR WARRANTIES, EXPRESS OR IMPLIED WHETHER OF TITLE, <br />MERCHANTABILITY, ITS CONDITION, PERFORMANCE, OR FITNESS FOR A <br />PARTICULAR PURPOSE OR OTHERWISE. <br />3.2 UNDER NO CIRCUMSTANCES WILL TRANSFEROR BE LIABLE TO <br />TRANSFEREE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL OR <br />CONSEQUENTIAL DAMAGES ARISING OUT OF OR RELATED TO THIS AGREEMENT OR <br />THE EQUIPMENT OR ITS USE BY TRANSFEROR. <br />Section 4. Miscellaneous Provisions <br />4.1 Authority. Each of the persons executing this Agreement represent that he or she has full power <br />and authority to execute this Agreement on behalf of the party that person represents. <br />4.2 Law and Venue. This Agreement shall be construed and enforced according to the laws of the <br />State of Texas; and exclusive venue for any legal action arising under this Agreement shall lie in Hays <br />County, Texas. <br />4.3 Immunity: The City's execution of and performance under this Agreement will not act <br />as a waiver of any immunity of the City to suit or liability under applicable law. The parties <br />acknowledge that the City, in executing and performing this Agreement, is a governmental entity <br />acting in a governmental capacity. <br />4.4 Effective Date. This Agreement will become effective upon execution of both parties. <br />4.5 Amendment. No amendment of this Agreement will be effective until the amendment has been <br />reduced to writing, each party has duly approved it, and is signed by the authorized representatives of the <br />Parties. Any amendment will incorporate this Agreement in every particular not otherwise changed by the <br />amendment. <br />4.6 Complete Agreement/Amendment. This Agreement represents a complete agreement of the <br />parties and supersedes all prior written and oral matters related to this Agreement. This Agreement may be <br />canceled, changed, modified or amended, in whole or in part, only by the written and recorded agreement <br />by the City and the Transferee. <br />4.7 Binding Effect. This Agreement will be binding on and inure to the benefit of the Parties and their <br />respective successors and assigns. <br />4.8 Interpretation. Each of the Parties have been represented by counsel of their choosing in the <br />negotiation and preparation of this Agreement. In the event of any dispute regarding the interpretation of <br />this Agreement, this Agreement will be interpreted fairly and reasonably and neither more strongly for nor <br />against any Party based on draftsmanship. <br />Page 2 of 4 <br />