Shipyard Delivery Option Clause Samples

Shipyard Delivery Option. (a) Where Charterer exercises the Shipyard Delivery Option, Charterer shall be required to accept delivery of the Vessel for all purposes of this Charter after the Vessel has passed (i) the Equipment Test and (ii) the Vessel inspection to be performed at the Shipyard by Charterer and Owner. Such acceptance shall be evidenced by the execution and delivery by the Parties of a Certificate of Acceptance in accordance with Clause 6.11, and the Hire Commencement Date shall be the Delivery Date. If the Vessel fails the Vessel inspection, Charterer may either (i) require Owner to repair or modify and re-tender the Vessel at the Shipyard or (ii) reject the Vessel. (b) Notwithstanding Clause 6.7(a), Charterer shall have the right to perform the Delivery Tests (at Charterer’s Facility) on the Vessel at any time after accepting delivery of the Vessel pursuant to the Shipyard Delivery Option. If such Delivery Tests are performed and the Vessel fails to meet the Required Performance Levels, Charterer may elect to keep the Vessel on-Hire and pay a reduction in Hire pursuant to Clause 23, or put the Vessel off-Hire for the period during which the Vessel is not at Charterer’s disposition (such period commencing from the date the Delivery Tests are completed). In such case, Owner shall repair or modify (or procure the repair or modification) of the Vessel in order to achieve the Required Performance Levels. When such repairs or modifications are completed, Owner shall give written notice thereof to Charterer and the same procedures set forth in Clause 6.4(c) (in relation to the Repair Option) shall apply (mutatis mutandis) in relation to the tendering, testing and delivery of the Vessel by Owner to Charterer and the Vessel shall be on-Hire (and Hire shall be due and payable) from the Applicable Re-tender Date.