Common use of Effect of Rejection Clause in Contracts

Effect of Rejection. If the BUYER shall give a notice of rejection of the VESSEL in accordance with the Paragraph 5 of this Article VI, the BUILDER may within ten (10) days after receipt of such notice of rejection dispute the rejection in whole or in part. In the event the BUILDER gives such a written notice of dispute then: (a) The BUILDER and the BUYER shall negotiate in good faith to settle or adjust the matters so in dispute and, if within ten (10) days the matter cannot be resolved, then; (b) The BUILDER may elect to submit the matters for arbitration in accordance with the provisions of Article XIII hereof when all proper steps shall be taken by all concerned with a view to obtaining an award within sixty (60) days after the reference to arbitration.