Common use of DEADWEIGHT BELOW CONTRACT REQUIREMENTS Clause in Contracts

DEADWEIGHT BELOW CONTRACT REQUIREMENTS. (i) The Contract Price of the Vessel shall not be affected or changed, if actual deadweight tonnage determined as provided in this Contract Article 1 (c) and the Specifications, is below the deadweight tonnage of 50,000 metric tons on xxxxxxxxx moulded draft of 13.06 meters as required by this Contract and the Specification or above the same by an amount of 500 metric tons or less. However, should the actual deadweight tonnage of the Vessel be more than 500 metric tons below the said required deadweight tonnage, then the Contract Price of the Vessel shall be reduced for each full one metric ton (fractions of one metric ton shall be disregarded) of decreased deadweight in excess of 500 metric tons by the sum of US$900 per metric ton. (ii) If the deficiency in the deadweight tonnage of the Vessel is more than 1,000 metric tons below the said required deadweight tonnage, then the Buyer, at his option, may, subject to the Builder’s rights to effect alterations or corrections as specified in Article 6 (e) hereof, cancel this Contract or may accept the Vessel with a maximum reduction in the Contract Price at the rate given above.