Common use of EXTENT OF GUARANTEE Clause in Contracts

EXTENT OF GUARANTEE. On delivery of the VESSEL the CONTRACTOR shall be free of all responsibility or liability whatsoever except for the guarantee contained in this Article. The CONTRACTOR shall guarantee the PURCHASER for a period of 2 years for the VESSEL. The CONTRACTOR shall guarantee the PURCHASER for a period of 5 years for the VESSEL'S coatings specified in Article 3.7 of the SPECIFICATIONS. The guarantee shall apply only to the work of the CONTRACTOR and of its subcontractors and/or suppliers. The CONTRACTOR's liability shall be limited to the above mentioned obligations as to extent and duration and the CONTRACTOR and/or its subcontractors and suppliers shall have no further liability whatsoever for defects due to normal wear and tear or overloading or due to accidents, fire, improper loading or stowage of the VESSEL, mis-management or negligence in the use and maintenance of the VESSEL. Replacements and repairs pursuant to the CONTRACTOR's guarantee obligations shall be subject to guarantee in accordance with this article. If the replacements or repairs under this Article cannot be conveniently made at (one of) the CONTRACTOR's yard(s), the PURCHASER may have carried out elsewhere such repairs and/or replacements; in such a case the CONTRACTOR is discharged from this guarantee and shall reimburse the PURCHASER the documented expenses incurred by the PURCHASER, but such a reimbursement shall not exceed the estimated costs of carrying out the guarantee work at the CONTRACTOR's yard(s) as described above. In the event that the guarantee period provided by manufacturers or suppliers of various components of machinery, materials, equipment, appurtenances and outfit furnished to the CONTRACTOR and embodied in the VESSEL exceeds the aforesaid guarantee period, such extended guarantee rights are to be assigned and made available to the PURCHASER by the CONTRACTOR to the extent possible. THE CONTRACTOR, at its own cost, is to have the right to investigate the validity of the PURCHASER's claim either by the attendance aboard the VESSEL (without interruption to the operation of the VESSEL) of an accredited representative or, in the event it is practicable to do so after suitable replacement is made, by the removal from the VESSEL and the transportation to the CONTRACTOR's shipyard(s) of the defective part. In case of an unjustified claim by the PURCHASER, PURCHASER has to repay CONTRACTER for all costs incurred for inspection and investigation of this incorrect claim. This guarantee shall not apply to items supplied by the PURCHASER.