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Shipbuilding Contract Hull No._____
stores furnished by the SELLER for the Trial Run or Trial Runs remain on board the VESSEL at the time of acceptance thereof by the BUYER, the BUYER agrees to buy the same from the SELLER at the current market price at the port of delivery thereof, and payment by the BUYER shall be effected as provided in Article II 3 (f) and 4 (f) of this Contract.
The BUYER shall supply lubricating oil and hydraulic oil for the purpose of Trial Runs at its own expenses and the SELLER will reimburse for the amount of lubricating oil and hydraulic oil actually consumed for the said Trial Run or Trial Runs at the original price incurred by the BUYER and payment by the SELLER shall be effected as provided in Article II 3(f) and 4(f) of this Contract.
6. EFFECT OF ACCEPTANCE
The BUYER's acceptance of the VESSEL by written or telefax, or telex notification sent to the SELLER, in accordance with the provisions set out above, shall be final and binding so far as conformity of the VESSEL to this Contract and the Specifications is concerned, and shall preclude the BUYER from refusing formal delivery by the SELLER of the VESSEL, as hereinafter provided, if the SELLER complies with all other procedural requirements for delivery as hereinafter set forth.
(If, at the time of delivery of the VESSEL, there are deficiencies in the VESSEL, such deficiencies should be resolved in such way that if the deficiencies are of minor importance, and do not in any way affect the safety or the operation of the Vessel, its crew, passengers or cargo the Seller shall be nevertheless entitled to tender the Vessel for delivery and the Buyer shall be nevertheless obliged to take delivery of the Vessel, provided that:
(i) the Seller shall for its own account remedy the deficiency and fulfil the
requirements as soon as possible, or
ii) if elimination of such deficiencies will affect timely delivery of the
VESSEL, then the Seller shall indemnify the Buyer for any direct cost reimbursement in association with remedying these minor non-conformities elsewhere from China as a consequence thereof, excluding, however, loss of time and/or loss of profit.)
Date: _th ________, 200_
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Shipbuilding Contract Hull No._____
ARTICLE VII DELIVERY
1. TIME AND PLACE
The VESSEL shall be delivered safely afloat by the SELLER to the BUYER at the SELLER's Shipyard, in accordance with the Specifications and with all Classification and Statutory Certificates and after completion of Trial Run (or, as the case may be, re-Trial or re-Trials) and acceptance by the BUYER in accordance with the provisions of Article VI hereof on or before ___________, 20--__ provided that, in the event of delays in the construction of the VESSEL or any performance required under this Contract due to causes which under the terms of the Contract permit extension of the time for delivery, the aforementioned time for delivery of the VESSEL shall be extended accordingly.
The aforementioned date or such later date to which delivery is extended pursuant to the terms of this Contract is hereinafter called the \
2. WHEN AND HOW EFFECTED
Provided that the BUYER and the SELLER shall each have fulfilled all of their respective obligations as stipulated in this Contract, delivery of the VESSEL shall be effected forthwith by the concurrent delivery by each of the parties hereto, one to the other, of the Protocol of Delivery and Acceptance, acknowledging delivery of the VESSEL by the SELLER and acceptance thereof by the BUYER, which Protocol shall be prepared in quadruplicate and executed by each of the parties hereto.
3. DOCUMENTS TO BE DELIVERED TO THE BUYER
Upon acceptance of the VESSEL by the BUYER, the SELLER shall deliver to the BUYER the following documents (subject to the provision contained in Article V 2 hereof) which shall accompany the aforementioned Protocol of Delivery and Acceptance:
(a) PROTOCOL OF TRIALS of the VESSEL made by the SELLER pursuant
to the Specifications. (b) PROTOCOL OF INVENTORY of the equipment of the VESSEL
including spare part and the like, all as specified in the Specifications,
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Date: _th ________, 200_
Shipbuilding Contract Hull No._____
made by the SELLER.
(c) PROTOCOL OF STORES OF CONSUMABLE NATURE made by the
SELLER referred to under Paragraph 5 of Article VI hereof. (d) FINISHED DRAWINGS AND PLANS pertaining to the VESSEL as
stipulated in the Specifications, made by the SELLER. (e) PROTOCOL OF DEADWEIGHT AND INCLINING EXPERIMENT,
made by the SELLER (f) ALL CERTIFICATES required to be furnished upon delivery of the
VESSEL pursuant to the Specifications.
Certificates shall be issued by relevant Authorities or classification Society. The VESSEL shall comply with the above rules and regulations which are in force at the time of signing this Contract. All the certificates shall be delivered in one (1) original to the vessel and two (2) copies to the BUYER.
If the full term certificate or certificates are unable to be issued at the time of delivery by the Classification Society or any third party other than the SELLER, then the provisional certificate or certificates as issued by The Classification Society or the third party other than the SELLER with the full term certificates to be furnished by the SELLER after delivery of the VESSEL and in any event before the expiry of the provisional certificates shall be acceptable to the BUYER.
(g) DECLARATION OF WARRANTY issued by the SELLER that the
VESSEL is delivered to the BUYER free and clear of any liens, charges, claims, mortgages, or other encumbrances upon the BUYER's title thereto, and in particular, that the VESSEL is absolutely free of all burdens in the nature of imposts, taxes or charges imposed by the province or country of the port of delivery, as well as of all liabilities of the SELLER to its sub-contractors, employees and crews and/or all liabilities arising from the operation of the VESSEL in Trial Run or Trial Runs, or otherwise, prior to delivery. (h) COMMERCIAL INVOICE made by the SELLER. (i) BILL OF SALE made by the SELLER. (j) Builder’s Certificate made by the SELLER.
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Date: _th ________, 200_
Shipbuilding Contract Hull No._____
4. TITLE AND RISK
Title to and risk of the VESSEL shall pass to the BUYER only upon delivery thereof. As stated above, it being expressly understood that, until such delivery is effected, title to the VESSEL, and her equipment, shall remain at all times with the SELLER and are at the entire risk of the SELLER.
5. REMOVAL OF VESSEL
The BUYER shall take possession of the VESSEL immediately upon delivery and acceptance thereof, and shall remove the VESSEL from the premises of the SELLER within seven (7) days after delivery and acceptance thereof is effected. If the BUYER shall not remove the VESSEL from the premises of the SELLER within the aforesaid seven (7) days, then, in such event, without prejudice to the SELLER's right to require the BUYER to remove the VESSEL immediately at any time thereafter, the BUYER shall pay to the SELLER the reasonable mooring charge of the VESSEL.
6. TENDER OF THE VESSEL
If the BUYER fails to take delivery of the VESSEL after completion thereof according to this Contract and the Specifications without justified reason, the SELLER shall have the right to tender the VESSEL for delivery after compliance with all procedural requirements as above provided.
Date: _th ________, 200_
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