Article 1 Nature of relationship between the Parties
1.1 For the purpose of winning, executing and performing of the contract with the Employer for delivering the Project, Party A hereby assigns Party B as a local consultant of Party A with respect to the foregoing Project. Party B shall act in such capacity in accordance with the stipulations under this Agreement.
1.2 It is expressly understood and agreed between the Parties hereto that by entering into this Agreement, it does not mean to form or establish any partnership or other form of business association between the Parties hereto and each Party shall remain a separate entity from the other Party.
1.3 It is also expressly understood and agreed between the Parties hereto that by entering into this Agreement, it does not mean to form or establish any relationship between a principal and an agent.
1.4 Pursuant to the principles of “no partnership and no agency” set forth in the foregoing Sub-clause 1.2 and Sub-clause 1.3, the Parties hereto expressly agree that neither Party is authorized or entrusted with any power, authority or right under this Agreement to make any binding commitment or to incur any debt and liability for and on behalf of the other Party. The Party who makes such commitment or incurs such debt and liability shall be held solely liable for its legal consequences and shall keep the other Party fully indemnified from any consequent losses or damages.
1.5 Pursuant to the principles of “no partnership and no agency” set forth in the foregoing Sub-clause 1.2 and Sub-clause 1.3, the Parties hereto expressly agree that each Party shall have the obligation to strictly observe all applicable laws of the country where the Project is located in the course of implementing this Agreement and each Party shall solely bear any legal consequences for its own activities in connection with this Agreement and neither Party shall be held responsible for the other Party’s activities in connection with this Agreement.
1.6 During the validity period of this Agreement, Party B shall not provide any third party with any services that may cause conflict of interest for the contract of the same Project specified hereinabove, including without limitation services intended to help any competitors to win the bid for the Contract.