Common use of Speed Clause in Contracts

Speed. (a) The Contract Price of the VESSEL shall not be affected nor changed by reason of the actual speed (as determined by the Trial Run after correction according to the Specifications) being less than five tenths (5/10) of one knot below the Guaranteed Speed. (b) However, commencing with and including a deficiency of five tenths (5/10) of one knot in actual speed (as determined by the Trial Run after correction according to the Specifications) below the Guaranteed Speed as specified in Paragraph 4, Article I of this Contract, the Contract Price shall be reduced as follows: In case of deficiency: at or above 0.50 but below 0.60 knot US$ 5,000 at or above 0.60 but below 0.70 knot US$ 10,000 at or above 0.70 but below 0.80 knot US$ 15,000 at or above 0.80 but below 0.90 knot US$ 20,000 at or above 0.90 but below 1.00 knot US$ 25,000 at or above 1.00 knot US$ 30,000 (c) If the deficiency in actual speed (as determined by the Trial Run after correction according to the Specifications) of the VESSEL upon the Trial Run, is 1.00 knot or more than 1.00 knot below the Guaranteed Speed, then the BUYER may at its option reject the VESSEL and rescind this Contract in accordance with provisions of Article X of this Contract, or may accept the VESSEL at a reduction in the Contract Price as above provided in the maximum amount of United States Dollars thirty thousand only (US$ 30,000).