Common use of INSUFFICIENT SPEED Clause in Contracts

INSUFFICIENT SPEED. (i) 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 6 hereof, is less than the speed required under the terms of this Contract and the Specifications provided such deficiency in actual speed is less than three-tenths (3/10) of one knot below the guaranteed speed. (ii) However, commencing with and including a deficiency of three tenths (3/10) of one (1) knot, the Contract Price shall be reduced for each full one-tenth (1/10) of one knot of deficiency in speed and up to nine-tenths (9/10) of one (1) knot (but fractions of less than one-tenth (1/10) of one knot shall be disregarded) as follows; For three tenth (0.3) of a knot by a total of: US$60,000.- for four-tenth (0.4) of a knot by a total of: US$120,000.- for five-tenth (0.5) of a knot by a total of: US$180,000.- for six-tenth (0.6) of a knot by a total of: US$240,000.- for seven-tenth (0.7) of a knot by a total of: US$300,000.- for eight-tenth (0.8) of a knot by a total of: US$360,000.- for nine-tenth (0.9) of a knot by a total of: US$420,000.- (iii) If the deficiency in actual speed of the Vessel is more than nine tenths (9/10) of a 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 6 (e) hereof, cancel this Contract or may accept the Vessel with a maximum reduction in the Contract Price as specified above for nine-tenths (9/10) of a knot.