Common use of Container capacity Clause in Contracts

Container capacity. (a) In the event that the actual nominal container capacity of the VESSEL as determined in accordance with the Specifications is less than the Guaranteed Container Capacity of 2546 TEU by more than forty-six (46) TEUs, the Contract Price shall be reduced by the sum of thirty thousand United States Dollars (US$30,000) for each container TEU of deficiency in excess of forty-six (46) TEUs. (b) In the event of the foregoing deficiency is fifty-five (55) TEU containers or more, the BUYER may, at its option reject the VESSEL and rescind this Contract in accordance with the provisions of ARTICLE X hereof or may accept the VESSEL at a total reduction in the Contract Price as above provided of two hundred and seventy thousand United States Dollars (US$270,000). (c) Notwithstanding anything contained herein, the homogenous intake of containers of 14 ton TEU will not be below 1900. (d) In the event that the actual homogenous intake of containers of 14 ton TEU is less than 1900, the Contract Price shall be reduced by the sum of: (1) twenty-one thousand five hundred United States Dollars (US$21,500) for each TEU lof such deficiency up to and including twenty (20) TEUs; and (2) thirty-five thousand United States Dollars (US$35,000) for each TEU of such deficiency from and including twenty-one (21) TEU up to and including twenty-five TEU. (e) In the event of such deficiency in the actual homogenous intake of containers being twenty-six (26) TEU or more, then the BUYER may, at its option, reject the VESSEL and rescind this Contract in accordance with the provisions of ARTICLE X hereof or may accept the VESSEL at a total reduction in the Contract Price as above provided of six hundred and five thousand United States Dollars (US$605,000).