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ARTICLE WARRANTY OF QUALITY 1. GUARANTEE OF MATERIAL AND WORKMANSHIP The Seller for a period of twelve (12) months following delivery to the Buyer of the Vessel, guarantees the Vessel, her hull and machinery and all parts and equipment hereof that are manufactured or furnished or supplied by the Seller and/ or its sub-contractors under this Contract including material, equipment (however excluding any parts for the Vessel which have been supplied by or on behalf of the Buyer) against all defects which are due to defective materials, and/ or poor workmanship. 2. NOTICE OF DEFECTS The Buyer shall notify the Seller in writing, or by telex confirmed in writing, as promptly as possible, after discovery of any defect or deviations for which a claim is made under this guarantee. The Buyers written notice shall describe the nature of the defect and the extent of the damage caused thereby. The Seller shall have no obligation under this guarantee for any defects discovered prior to the expiry date of the guarantee, unless notice of such defects, is received by the Seller not later than thirty (30) days after such expiry date. Telexed advice with brief details explaining the nature of such defect and extent of damage within thirty (30) days after such expiry date and that a claim is forthcoming will be sufficient compliance with requirements as to time. 3. REMEDEY OF DEFECTS The Seller shall remedy at its expense any defects, against which the Vessel or any part of the equipment thereof is guaranteed under this Article by making all necessary repairs and/ or replacement. Such repairs and/ or replacement will be made by the Seller. However, if it is impractical to make the repair by the Seller, and if forwarding by the Seller of replacement parts, and materials can not be accomplished without impairing or delaying the operation or working of the Vessel, then, in any such event, the Buyer shall, cause the necessary repairs or replacements to be made elsewhere at the discretion of the Buyer provided that the Buyer shall first and in all events, will, as soon as possible, give the Seller notice in writing, or by telex confirmed in writing of the time and place such repairs will be made and, if the Vessel is not thereby delayed, or her operation or working is not thereby delayed, or her operation or working is not thereby impaired, the Seller shall have the right to verify by its own representative(s) or that of Classification Society the nature and extent of the defects complained of. The Seller shall, in such cases, promptly advise the Buyer, by telex, after such examination has been completed, of its acceptance or rejection of the defects as ones that are subject to the guarantee herein provided. In all minor cases, the Guarantee Engineer, as hereinafter provided for, will act for and on behalf of the Seller. In any circumstances as set out below, the Seller shall immediately pay to the Buyer in United States Dollars by telegraphic transfer the actual cost for such repairs or replacements including forwarding charges, or at the average cost for making similar repairs or replacements including forwarding charges as quoted by a leading shipyard each in Japan, South Korea and Singapore, whichever is lower: (a) Upon the Sellers acceptance of the defects as justifying remedy under this Article, or (b) If the Seller neither accepts nor rejects the defects as above provided, nor request arbitration within thirty (30) days after its receipt of the Buyers notice of defects. Any dispute shall be referred to arbitration in accordance with the provisions of Article hereof. 4. EXTENT OF THE SELLERS LIABILITY The Seller shall have no obligation and/ or liabilities with respect to defects discovered after the expiration of the period of guarantee specified above. The Seller shall be liable to the Buyer for defects and damages caused by any of the defects specified in Paragraph 1 of this Article provided that such liability of the Seller shall be limited to damage occasioned within the guarantee period specified in Paragraph 1 above. The Seller shall not be obliged to repair, or to be liable for, damages to the Vessel, or to any part of the equipment thereof, due to ordinary wear and tear or caused by the defects other than those specified in Paragraph 1 above, nor shall there be any Sellers liability hereunder for defects in the Vessel, or any part of the equipment thereof, caused by fire or accidents at sea or elsewhere, or mismanagement, accidents, negligence, or willful neglect, on the part of the Buyer, its employees or agents including the Vessels officers, crew and passengers, or any persons on or doing work on the Vessel other than the Seller, its employees, agents or sub-contractors. Likewise, the Seller shall not be liable for defects in the Vessel, or the equipment or any part thereof, due to repairs or replacement which made by those other than the Seller and/ or their sub-contractors. Upon delivery of the Vessel to the Buyer, in accordance with the terms of the Contract, the Seller shall thereby and thereupon be released of all responsibility and liability whatsoever and howsoever arising under or by virtue of this Contract (save in respect of those obligations to the Buyer expressly provided for in this Article ) including without limitation, any responsibility or liability for defective workmanship, materials or equipment, design or in respect of any other defects whatsoever and any loss or damages resulting from any act, omission or default of the Seller. Neither CSTC nor the Seller shall, in any circumstances, be liable for any consequential loss or special loss, or expense arising from any cause whatsoever including, without limitation, loss of time, loss of profit or earnings or demurrage directly from any commitments of the Buyer in connection with Vessel. The Guarantee provided in this Article and the obligations and the liabilities if the Seller hereunder are exclusive and in lieu of and the Buyer herby waives all other remedies, warranties, guarantees or liabilities, express or implied, arising by Law or otherwise (including without limitation any obligations of the Seller with respect to fitness, merchantability and consequential damages) or whether or not occasioned by the Sellers negligence. This guarantee shall be extended, altered or varied except by a written instrument signed by the duly authorized representatives of the Seller, and the Buyer. 5. GUARANTEE ENGINEER The Seller shall appoint one or two Guarantee Engineer(s) to serve the Vessel as the Sellers representative(s) for a period of twelve (12) months from the delivery of the Vessel. The Buyer, and its employees, shall give such guarantee Engineer(s) full co-operation in carrying out his/ their duties as the representative(s) of the Seller on board the Vessel. The Buyer shall accord the Guarantee Engineer(s) the treatment comparable to the Vessels Chief Engineer, and shall provide him with accommodation and subsistence at no cost to the Seller and/ or the Guarantee Engineer(s). The Buyer shall pay to the Guarantee Engineer(s) the sum of United States Dollars only (US ) per month to cover his/ their miscellaneous expenses including wages and also the Buyer shall pay the expense of repatriation to Beijing, the Peoples Republic of China by air upon termination of his/ their service, the expense of his/ their communications with the Seller when made in performance of his/ their duties as the Guarantee Engineer(s) and the expense, if any, of his/ their medical and hospital care. The Buyer, its successor(s) and/ or assign(s), shall be liable to and indemnify the Seller and/ or the Guarantee Engineer(s) and/ or the Seller for personal injuries, including death and damages to, or loss or destruction of property of the Guarantee Engineer(s), if such death, injuries, damages, loss and / or destruction were caused by gross negligence or willful misconduct of the Buyer, its successor(s) and/ or assign(s) or its employees and/ or agents. Pertaining to the detailed particulars of this Paragraph, and agreement will be made according to this effect between the parties hereto upon delivery of the Vessel.(船舶建造合同)质量保证 1 材料和工艺的保证在卖方将本船交付给买方后12个月内,卖方保证对本船、其船体、机械设备及其所有部件和所有由卖方和/或本合同中的其分包商制作完成或提供的包括材料、设备(但由买方或以买方名义提供的任何部件除外)发生因材料缺陷、设计错误和/或制作工艺错误引起的缺陷承担责任。2 缺陷的通知买方发现属于本保证范围内据以索赔的缺陷或偏差后,应立即以书面或书面确认的电传通知卖方。在买方的书面通知中应详细说明缺陷的性质和由此引起损坏的程度。卖方在保证期到期后三十天内未收到缺陷通知,卖方对保证期到期之前发现的缺陷不承担义务。在保证期到后三十天内应电传通知发生的缺陷,需要说明缺陷的性质和损坏的程度,则随后的索赔视为符合要求。3 缺陷的修复卖方应自行对本条所保证的本船或设备的任何部分所发生的缺陷进行必要的修复和/或更换。这些修复和/或更换应由卖方完成。但是,如果卖方不能修理本船,如果卖方的更换材料、部件的运输将影响或推迟本船运行,那么在此情况下,买方可自行选择在其他地方进行必要的修理或更换,但买方无论如何应首先尽快地用书面通知或书面确认的电传,告知买方将要修理的时间和地点。如果本船及其运行没有推迟,其运行未受损害,卖方有权由自己的代表或船级社代表,核实买方提出的缺陷的性质和范围。在此情况下,卖方在检验结束后,应迅速用电传通知买方,承认或拒绝这类缺陷属其担保提供范围。在一般情况下,随后指派的保证工程师,将代表卖方。出现下列情况,卖方应立即将包括此类修理或更换含运输费的实际成本,或按日本、韩国、新加坡主要船厂实施类似修理或更换的平均费用包括其运输费用取其低者以美元电汇给买方。(1)卖方承认按本条应补救的缺陷,或(2)卖方在收到买方缺陷通知后三十天内,不接受也不拒绝上述缺陷,也不请求仲裁。任何争议将按照本合同第十三条的
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