Common use of INSUFFICIENT SPEED Clause in Contracts

INSUFFICIENT SPEED. (a) The CONTRACT PRICE of the VESSEL shall not be affected or changed, if the actual speed, as determined by trial runs more fully described in Article VI hereof, is less than the speed required under the terms of this CONTRACT and the SPECIFICATIONS provided such deficiency in actual speed is not more than three-tenths (3/10) of a knot below the guaranteed speed. (c) If the deficiency in actual speed of the VESSEL is more than one (1) full knot below the speed guaranteed under this CONTRACT, then the BUYER, at its option, may, subject to the BUILDER's right to effect alterations or corrections as provided in Article VI.5. hereof, cancel this CONTRACT or may accept the VESSEL at a reduction in the CONTRACT PRICE as above provided for one (1) full knot of deficiency only. (d) If the actual speed of the VESSEL exceeds the speed guaranteed under this CONTRACT, then the CONTRACT PRICE shall be increased for each full one-tenth (1/10) of a knot by adding U.S. Dollars Twenty Thousand (US$ 20,000) [fractions of less than one-tenth (1/10) of a knot shall be regarded as a full one-tenth (1/10) of a knot].