Common use of Liquidated Damage Clause in Contracts

Liquidated Damage. In the event the POSCO Plant fails to achieve at least 95% of the guaranteed power output and/or efficiency solely due to the fault of the DFC Module or DFC Components after repeated FA tests, Seller shall notify Buyer in writing of the reason for such failure. If the reason is solely attributable to causes related to DFC Module or DFC Components provided by Seller, then Seller shall have a period of six (6) months from the first FA test to take necessary corrective actions and repeat the FA test to achieve greater than 95% of the guaranteed power output and/or efficiency. If at the end of such time period 95% of the guaranteed power output and/or efficiency is still not achieved, then Buyer shall have recourse to Article 16.1 below.