CARGO TANKS’ CAPACITY BELOW CONTRACT REQUIREMENTS Sample Clauses

CARGO TANKS’ CAPACITY BELOW CONTRACT REQUIREMENTS. In the event, as per the final capacity plan issued by the BUILDER and approved by the BUYER, that the actual cubic capacity of cargo tanks including slop tanks and residual oil tank of the VESSEL is less than 344,500 cubic meters then commencing with and including a decrease of 3,445 cubic meters below such cubic capacity the BUILDER shall pay to the BUYER liquidated damages for each full cubic meter (but disregarding fractions of a cubic meter) of such decreased capacity exceeding 3,445 cubic meters but not more than 6,890 cubic meters, the amount of United States Dollars Eight Hundred (US$800) per cubic meter. However, unless the parties agree otherwise, and without prejudice to any other rights the BUYER may have towards any other deduction under this Contract the amount of deduction from the Contract Price under this paragraph shall not exceed the amount due to cover the deficiency of 6,890 cubic meters below the said required cubic meters hereinabove. Provided that if the deficiency in cubic capacity of the VESSEL in such condition exceeds 6,890 cubic meters below the above cubic capacity then the BUYER shall, subject to the BUILDER’s right to effect alterations or corrections as provided in Article VI.5, be entitled to reject the VESSEL and terminate this Contract in accordance with Article VI below or to accept the VESSEL.

CARGO TANKS’ CAPACITY BELOW CONTRACT REQUIREMENTS. The CONTRACT PRICE of the VESSEL shall not be affected or changed, if the actual cargo tank capacity determined as provided in this CONTRACT and the SPECIFICATIONS, is below the guaranteed cargo tank capacity as defined in Article I paragraph 2 hereof by one per cent (1%) of the guaranteed cargo tank capacity or less. (a) However, should the deficiency in the actual cargo tank capacity of the VESSEL be more than one per cent (1%) of the guaranteed cargo tank capacity (disregarding fractions of less than one (1) cubic meter), the CONTRACT PRICE shall be reduced by the sum of U.S. Dollars Seven Hundred (US$700) for each one (1) cubic meter deficiency (disregarding fractions of less than one (1) cubic meter) in excess of the said one per cent (1%) of deficiency. (b) However, unless the parties agree otherwise the total amount of reduction from the CONTRACT PRICE shall not exceed the amount due to cover the deficiency of two per cent (2%) below the guaranteed cargo tank capacity of the VESSEL as specified above. (c) In the event of such deficiency in the cargo tank capacity of the VESSEL being more than two per cent (2%) of the guaranteed cargo tank capacity, the BUYER, at its option, may, subject to the BUILDER’s right to effect alterations or corrections as specified in Article VI. 5. hereof, cancel this CONTRACT or accept the VESSEL at a reduction in the CONTRACT PRICE as above provided for two per cent (2%) of deficiency only.