Common use of Method of Acceptance or Rejection Clause in Contracts

Method of Acceptance or Rejection. 1. Upon successful completion of the trial run, Builder shall give Buyer written notice of such completion of the trial run, and that Builder considers that the results of the trial run indicate conformity of the Tug to this Contract and the Specifications. Buyer shall, within three (3) days after receipt of such notice from Builder, provide Builder written notice of its acceptance or rejection of the Tug. 2. Should the results of the trial run indicate that the Tug, or any part or equipment thereof, do not conform to the requirements of this Contract and/or the Specifications, or if Builder is in agreement with the non-conformity specified in Buyer’s notice of rejection, Builder shall take necessary steps to correct such non-conformity. Upon completion of correction of such non-conformity, Builder shall give Buyer written notice thereof, and, if necessary, conduct another trial run. Buyer shall, within two (2) days after receipt of such notice from Builder, notify Builder of its acceptance or rejection of the Tug. 3. In any event that Buyer rejects the Tug, Buyer shall indicate in its notice of rejection in what respect the Tug, or any part or equipment thereof, do not conform to this Contract and/or the Specifications. 4. In event that Buyer fails to provide Builder written notice of the acceptance of or the rejection together with the reason therefor of the Tug within the period as provided in the above Subparagraph 1 or 2, Buyer shall be deemed to have accepted the Tugs. 5. Builder may dispute the rejection of the Tug by Buyer under this Paragraph, in which case the matter shall be submitted for final decision in accordance with Article XIV hereof.

Method of Acceptance or Rejection. 1. a) Upon successful completion of the trial run, the Builder shall give Buyer written the Owner a notice by fax confirming in writing of such completion of the trial run, as and that if the Builder considers that the results of the trial run indicate conformity of the Tug Vessel to this Contract and the Specifications. Buyer The Owner shall, within three (3) days after receipt of such notice from the Builder, provide notify the Builder written notice by fax confirming in writing of its acceptance or rejection of the TugVessel. 2. b) Should the results of the trial run indicate that the TugVessel, or any part or equipment thereof, do does not conform to the requirements of this Contract and/or the Specifications, or if Builder is in agreement with the non-conformity specified in Buyer’s notice of rejection, Builder shall take necessary steps to correct such non-conformity. Upon completion of correction of such non-conformity, the Builder shall give Buyer written the Owner a notice thereof, and, if necessary, conduct another trial runthereof by fax confirming in writing. Buyer The Owner shall, within two (2) days after receipt of such notice from the Builder, notify the Builder of its acceptance or rejection of the TugVessel by fax confirming in writing. 3. c) In any event that Buyer the Owner rejects the TugVessel, Buyer the Owner shall indicate in its notice of rejection in what respect the TugVessel, or any part or equipment thereof, do thereof does not conform to this Contract and/or the Specifications. 4. d) In event that Buyer the Owner fails to provide notify the Builder written notice by fax confirming in writing of the acceptance of or the rejection together with the reason therefor of the Tug Vessel within the period as provided in the above Subparagraph 1 Sub-paragraph (a) or 2(b), Buyer the Owner shall be deemed to have accepted the TugsVessel. 5. e) The Builder may dispute the rejection of the Tug Vessel by Buyer the Owner under this Paragraph, in which case the matter shall be submitted for final decision by dispute resolution in accordance with Article XIV 13 hereof.

Method of Acceptance or Rejection. 1(a) If during any sea trials any breakdowns occur entailing interruption or irregular performance which can be repaired on board, the trial shall be continued after repairs and be valid in all respects. Upon successful If such repair is temporarily made to continue sea trials, the Builder will inspect the repaired part after sea trials to assure that it complies with the Specifications. However, if such interruption or irregular performance occurs more than two times on the same items, then such item(s) should be identified by the Builder to the Buyer as soon as practicably possible, and inspected/corrected by the Builder as soon as practicably possible. In the meantime, the inspection result, which will be final or preliminary as the case may be, should be given to the Buyer before the delivery of the Vessel. (b) As soon as practicable after satisfactory completion of the trial run, Builder shall give Buyer a written report thereon and written notice of such completion of the trial run, and that Builder considers that the results of the trial run indicate conformity of the Tug Vessel to this Contract and the Specifications. Buyer shall, within three (3) days Business Days after receipt of such notice from Builder, provide notify Builder written notice of its acceptance or rejection of the TugVessel on the basis of its conformity or non-conformity with the requirements of this Contract and the Specifications. 2. Should (c) If the results of the trial run indicate that the TugVessel, or any part or equipment thereof, do does not conform to the requirements of this Contract and/or the Specifications, or if Builder is in agreement with the non-conformity specified in Buyer’s notice of rejectionthen, Builder shall take the necessary steps to correct such non-conformity. Upon completion of correction of such non-conformity, Builder shall give Buyer written notice thereof, and, if necessary, conduct another trial run. Buyer shall, within two three (23) days after receipt of such notice from Builder, Builder notify Builder of its acceptance or rejection of the TugVessel. However, Buyer shall not be entitled to reject the Vessel by reason of any minor or insubstantial defect or non-conformity judged from the viewpoint of standard shipbuilding practice but in such case, the Builder shall not be released from its obligation to correct and/or remedy such minor or insubstantial non-conformity as far as practicable during the Warranty Period. 3. In (d) If Buyer considers that the results of the trial run indicate that the Vessel or any event that Buyer rejects part or equipment thereof does not conform to this Contract and/or the TugSpecifications, Buyer shall indicate in its detail in a notice of rejection in what respect the Tug, Vessel or any part or equipment thereof, do does not in its opinion conform to this Contract and/or the Specifications. 4. In event that (e) If Buyer fails to provide notify Builder written notice in writing or telefax confirmed in writing of the acceptance or rejection of or the rejection Vessel together with the reason therefor of the Tug within the period as provided in the above Subparagraph 1 Article VI.4 (b) or 2(c), Buyer shall be deemed to have accepted the TugsVessel. 5. (f) Builder may dispute the rejection of the Tug Vessel by Buyer under this ParagraphArticle VI.4, in which case the matter shall be submitted for final decision by arbitration in accordance with Article XIV hereofXIII. (g) If requested by the Buyer, and such request is consistent with the constraints of the Builder and not to be unreasonably denied, the Builder at its own cost, time and risk shall give a demonstration to the Buyer’s crew how to operate the machineries and other equipment of the Vessel at the time of the trial run or between after trial run and before delivery in order for the Buyer’s crew to be familiarized with the said machineries and other equipment in accordance with the Builder’s practice.

Method of Acceptance or Rejection. 1. (a) Upon successful completion of the trial run, Builder the BUILDER shall give Buyer written the BUYER a notice by telefax of such completion of the trial run, as and that Builder if the BUILDER considers that the results of the trial run indicate conformity of the Tug VESSEL to this Contract and the Specifications. Buyer The BUYER shall, within three (3) days after receipt of such notice from Builderthe BUILDER, provide Builder written notice notify the BUILDER by telefax of its acceptance or rejection of the TugVESSEL. 2. Should (b) However, should the results of the trial run nun indicate that the TugVESSEL, or any part or equipment thereof, do does not conform to the requirements of this Contract and/or the Specifications, or if Builder the BUILDER is in agreement with the to non-conformity as specified in Buyerthe BUYER’s notice of rejection, Builder then, the BUILDER shall take necessary steps to correct such non-conformity. Upon completion of correction of such non-conformity, Builder the BUILDER shall give Buyer written the BUYER a notice thereof, and, if necessary, conduct another trial runthereof by telefax. Buyer The BUYER shall, within two (2) days after receipt of such notice from Builderthe BUILDER, notify Builder the BUILDER of its acceptance or rejection of the TugVESSEL. 3. (c) In any event that Buyer the BUYER rejects the TugVESSEL, Buyer the BUYER shall indicate in its notice of rejection in what respect the TugVESSEL, or any part or equipment thereof, do thereof does not conform to this Contract and/or the Specifications. 4. (d) In the event that Buyer the BUYER fails to provide Builder written notice notify the BUILDER by telefax of the acceptance of or the rejection together with the reason therefor of the Tug VESSEL within the period as provided in the above Subparagraph 1 Sub-paragraph (a) or 2(b), Buyer the BUYER shall be deemed to have accepted the TugsVESSEL. 5. Builder (e) The BUILDER may dispute the rejection of the Tug VESSEL by Buyer the BUYER under this Paragraph, in which case the matter shall be submitted for final decision by arbitration in accordance with Article XIV XIII hereof.

Method of Acceptance or Rejection. 1. Upon successful completion of the final trial run, Builder shall give Buyer written notice of such completion of the final trial run, and that Builder considers that the results of the trial run runs indicate conformity of the Tug Vessel to this Contract and the Specifications. Buyer shall, within three (3) days after receipt of such notice from Builder, provide Builder written notice of its acceptance or rejection of the TugVessel. 2. Should the parties agree that the results of the trial run runs indicate that the TugVessel, or any part or equipment thereof, do does not conform to the requirements of this Contract and/or the Specifications, or if Builder is in agreement with the non-conformity specified in Buyer’s notice of rejection, Builder shall take necessary steps to correct such non-conformity. Upon completion of correction of such non-conformity, Builder shall give Buyer written notice thereof, and. Buyer shall then have a period of five (5) days following the completion of such alterations or corrections to re-inspect the Vessel and/or to observe further sea trial runs conducted by the Builder at its expense, if necessary, conduct another trial runsuch trials are reasonably necessary to test the repairs. Buyer shall, within two Within five (25) days after receipt Buyer’s re-inspection and/or observation of such notice from Builderre-trial runs, Buyer shall notify Builder of its acceptance or rejection of the TugVessel. 3. In any event that Buyer rejects the TugVessel, Buyer shall indicate in its notice of rejection in what respect the TugVessel, or any part or equipment thereof, do does not conform to this Contract and/or the Specifications. 4. In event that Buyer fails to provide Builder written notice of the acceptance of or the rejection together with the reason therefor of the Tug Vessel within the period as provided in the above Subparagraph SubArticle 1 or 2, Buyer shall be deemed to have accepted the TugsVessel. 5. Builder may dispute the rejection of the Tug by Buyer under this Paragraph, in which case the matter shall be submitted for final decision in accordance with Article XIV hereof.

Method of Acceptance or Rejection. 1. Upon successful completion of the trial run, Builder shall give Buyer written notice of such completion of the trial run, and that Builder considers that the results of the trial run indicate conformity of the Tug Unit to this Contract and the Specifications. Buyer shall, within three (3) days after receipt of such notice from Builder, provide Builder written notice of its acceptance or rejection of the TugUnit. 2. Should the results of the trial run indicate that the TugUnit, or any part or equipment thereof, do not conform to the requirements of this Contract and/or the Specifications, or if Builder is in agreement with the non-conformity specified in Buyer’s notice of rejection, Builder shall take necessary steps to correct such non-conformity. Upon completion of correction of such non-conformity, Builder shall give Buyer written notice thereof, and, if necessary, conduct another trial run. Buyer shall, within two (2) days after receipt of such notice from Builder, notify Builder of its acceptance or rejection of the TugUnit. 3. In any event that Buyer rejects the TugUnit, Buyer shall indicate in its notice of rejection in what respect the TugUnit, or any part or equipment thereof, do not conform to this Contract and/or the Specifications. 4. In event that Buyer fails to provide Builder written notice of the acceptance of or the rejection together with the reason therefor of the Tug Unit within the period as provided in the above Subparagraph 1 or 2, Buyer shall be deemed to have accepted the Tugs.Units. [**] Confidential Treatment 23 5. Builder may dispute the rejection of the Tug Unit by Buyer under this Paragraph, in which case the matter shall be submitted for final decision in accordance with Article XIV hereof.