Common use of Speed Clause in Contracts

Speed. (a) The Contract Price shall not be affected or changed by reason of the trial speed (as determined according to the SPECIFICATIONS being less than the guaranteed speed, if such variation is not more than Two-Tenths (2/10) of One (1) knot. (b) However, if such variation is more than Two-Tenths (2/10) of One (1) knot, then, the Contract Price shall be decreased by Xxx Xxxxxxx xxx Xxxxxxx Xxxx Xxxxxxxx Xxxxxx Xxxxxx Dollars (US$ 175,000.-) for each successive whole One-Tenth(1/10) of a knot in excess of a deficiency of Two-Tenths (2/10) of a knot (in both cases smaller fractions being disregarded). (c) If the deficiency in the speed upon final sea trial is more than Half(1/2) a knot below the guaranteed speed of the VESSEL, then the BUYER may, at its option, reject the VESSEL and rescind this Contract in accordance with the provisions of Article X hereof, or may accept the VESSEL at a reduction in the Contract Price as above provided for Half(1/2) a knot only, that is, at a total reduction of Five Hundred and Twenty Five Thousand United States Dollars (US$ 525,000.-).

Speed. (a) The Contract Price shall not be affected or changed by reason of the trial speed (as determined according to the SPECIFICATIONS being less than the guaranteed speed, if such variation is not more than Two-Tenths (2/10) of One (1) knot. (b) However, if such variation is more than Two-Tenths (2/10) of One (1) knot, then, the Contract Price shall be decreased by Xxx Xxxxxxx xxx Xxxxxxx Xxxx Xxxxxxxx Xxxxxx Xxxxxx One Hundred and Seventy Five Thousand United States Dollars (US$ 175,000.-) for each successive whole One-Tenth(1/10) of a knot in excess of a deficiency of Two-Tenths (2/10) of a knot (in both cases smaller fractions being disregarded). (c) If the deficiency in the speed upon final sea trial is more than Half(1/2) a knot below the guaranteed speed of the VESSEL, then the BUYER may, at its option, reject the VESSEL and rescind this Contract in accordance with the provisions of Article X hereof, or may accept the VESSEL at a reduction in the Contract Price as above provided for Half(1/2) a knot only, that is, at a total reduction of Five Hundred and Twenty Five Thousand United States Dollars (US$ 525,000.-).

Speed. (a) The Contract Price shall not be affected or changed by reason of the trial speed (speed, as determined according to the SPECIFICATIONS Specifications, being less than the guaranteed guarantee speed, if such variation deficiency is not more than TwoThree-Tenths (2/10Tenths(3/10) of One (1One(l) knot. (b) However, if such variation deficiency is more than TwoThree-Tenths (2/10Tenths(3/10) of One (1One(l) knot, knot then, the Contract Price shall be decreased by Xxx Xxxxxxx xxx Xxxxxxx Xxxx Xxx Xxxxxxxx Xxxxxx Xxxxxx Dollars (US$ 175,000.-US$110,000) for each successive whole One-Tenth(1/10One Tenth (1/10) of a knot in excess of a deficiency of Two-Three Tenths (2/103/10) of a knot speed (in both cases smaller fractions being disregarded). (c) . If the deficiency in the speed upon final sea trial is more than Half(1/2One(l) a full knot below the guaranteed speed of the VESSEL, then the BUYER may, at its option, reject the VESSEL and rescind cancel this Contract in accordance with the provisions of Article X hereof, or may accept the VESSEL at a reduction in the Contract Price as above provided for Half(1/2One(l) a knot only, that is, at a total reduction of Five Seven Hundred and Twenty Five Seventy Thousand United States Dollars (US$ 525,000.-US$770,000).