Words and word combinations. Encl. Extract from the Contract on guarantee 1.1-9.2

Encl. Extract from the Contract on guarantee 1.1-9.2...

9.3. The guarantee period of the normal and continuous operation of the Plant shall be 12 months from the date when the Plant is put into operation but not more than 18 months from
the delivery date of the last consignment of the equipment inclu­ding complementary items of the equipment and materials.

9.4. The date of the Acceptance Protocol is the date of putting the Plant into operation. This protocol signed by both parties is to state that the proving trials have been successfully completed and that the Buyers have accepted the Plant for operation.

9.5. If during the guarantee period the Projects, any techni­cal documentation, description of production methods or equipment prove to have any defects or to be incomplete wholly or
partially or if the above - mentioned is not made in accordance with the terms and conditions of the Contract irrespective of whether it was found out in the process of examination of the technical documentation and/or during the tests of the equip­ment the Sellers undertake, at the Buyers' request, to eliminate the detected defects without any delay and without any additional payment of the Buyers' party.

The Sellers are to revise or to replace the technical documen­tation and/or to repair or replace the defective machines, units or parts thereof. In this case the Sellers are to pay, if the Buyers so request, agreed and liquidated damages as for late delivery at the rates mentioned in Clause 4 of the Contract. The penalty is calculated from the date of making the claim up to the date when the defects are eliminated or when the revised technical do­cumentation or goods for replacement are delivered, without prejudice to any other rights of the Buyers.

9.6. The defective goods, equipment or parts when replaced with new ones will be sent back to the Sellers, if they so request, for their account within the time agreed by the parties.

9.7. All the transport, insurance and other expenses for trans­portation of defective parts and/or replacements through the Buyers', transit or Sellers' countries are to be borne by the Sel­lers.

9.8.The above guarantee period for the replaced or repaired machines begins from the date of

putting them into operation.

9.9. If the Sellers fail to eliminate without delay the defects claimed by the Buyers, the Buyers have the right to eliminate these defects themselves for the Sellers' account.

In this case the Sellers are to cover normal actual expenses for the repairs. Any small defects the elimination of which is urgent and does not require the presence of the Sellers will be repaired by the Buyers and normal actual expenses will be char­ged to the Sellers' account.

9.10. If the defects cannot be eliminated the Buyers have the right to depart from the Contract or to request the appropriate reduction of the Contract price.

9.11. The Plant proving trials, commissioning and putting into operation period is ___months from the completion date of the erection work.

9.12. The Sellers guarantee that under normal operation the Plant will have the capacity of... per unit.

Analyse the case.

Questions

1. Why was the plant commissioned with a delay?

2. What was done by the Buyer to speed up the start-up? Why?

3. Why did the Buyer make a formal claim on the Seller?

4. What is the possible outcome of the forthcoming talks?

Roles

Buyer

You represent the interests of the plant built.Describe in full detail the cause of the poor performance of the equipment. Press for the delivery of all necessary replacements. Ask for better standards of training.

Seller

You are a representative of the plant.

Say on what conditions you are ready to replace faulty equip­ment. Criticize the conditions in which the equipment was stored during erection work. Outline the training programme for Russian experts.

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