Common use of INSUFFICIENT SPEED Clause in Contracts

INSUFFICIENT SPEED. (a) The Contract Price shall not be affected or changed by reason of the trial speed, as determined in accordance with the Specifications, being less than the Guaranteed Speed, if such deficiency is not more than three-tenths (3/10) of a knot. (b) However, if such deficiency is-more than three-tenths (3/10) of a knot, then, the Contract Price shall be reduced by deducting therefrom the amount of Seven Million One Hundred Thousand Japanese Yen (JPY7,100,000) per one-tenth (1/10) of a knot or deficiency over the aforesaid grace of three-tenths (3/10) of a knot (fractions of one-tenth (1/10) of a knot to be prorated). However, the maximum reduction in the Contract Price shall in no event be more than the amount in the case of a deficiency of seven-tenths (7/10) of a knot below the Guaranteed Speed. (c) If deficiency in the trial speed of the Vessel (as so determined) is more than seven-tenths (7/10) of a knot below the Guaranteed Speed, then, the Buyer shall have the option either to accept the Vessel at a maximum reduction in the Contract Price as above provided or to reject the Vessel and to rescind this Contract in accordance with provisions of Article X hereof as alternative to receiving the aforesaid liquidated damages.

INSUFFICIENT SPEED. (a) The Contract Price shall not be affected or changed by reason of the trial speed, as determined in accordance with the Specifications, being less than the Guaranteed Speed, if such deficiency is not more than three-tenths (3/10) of a knot. (b) However, if such deficiency is-is more than three-tenths (3/10) of a knot, then, the Contract Price shall be reduced by deducting therefrom the amount of Seven Million One Hundred Thousand Japanese Yen (JPY7,100,000) per one-tenth (1/10) of a knot or deficiency over the aforesaid grace of three-tenths (3/10) of a knot (fractions of one-tenth (1/10) of a knot to be prorated). However, the maximum reduction in the Contract Price shall in no event be more than the amount in the case of a deficiency of seven-tenths (7/10) of a knot below the Guaranteed Speed. (c) If deficiency in the trial speed of the Vessel (as so determined) is more than seven-tenths (7/10) of a knot below the Guaranteed Speed, then, the Buyer shall have the option either to accept the Vessel at a maximum reduction in the Contract Price as above provided or to reject the Vessel and to rescind this Contract in accordance with provisions of Article X hereof as alternative to receiving the aforesaid liquidated damages.