Guarantee

The Sellers guarantee:

7.1. That the equipment to be supplied has been manufactured in full conformity with description, technical specification and with the conditions of the Contract.

7.2. The period of the guarantee of the trouble-free operation of the equipment is to be twelve (12) months from the date of putting it into operation but not later than eighteen (18) months from the date of the shipment. The above period will be accordingly extended if start-up of the equipment is deferred or the operation of the equipment is stopped.

7.3. If the defects cannot be eliminated, the Buyers have the right to reject the defective equipment or to request a corresponding reduction from its price.

In case the Buyers reject the equipment it is returned to the Sellers or the latter’s account and the Sellers are to repay the sums paid by the Buyers with eight (8) per cent interest per annum.

7.4. If during the guarantee period the equipment proves to be incomplete or/and defective or/and not in conformity with the Contract conditions, the Sellers are to eliminate by means of repairing or replacing the defective equipment or parts thereof with new ones of good quality.

In this case the Buyers are entitled to demand from the Sellers payment of penalty as for delay in delivery at the rate and in accordance with the procedure stipulated in Clause 6 of the present Contract beginning with the date when the claim has been made till the date of delivery of new equipment.

7.5. All the transport charges and other expenses connected with the return or/and replacement of the defective equipment are to be borne by the Seller.

Ex. 12. Read the arbitration clauses below and answer these questions.

1. How can the disputes between the Parties be settled?

2. Where is the matter submitted to if the Parties come to no agreement?

3. How shall the Party which wishes to refer the dispute to Arbitration notify the other Party about its decision?

4. What information does the registered letter contain?

5. How long does it take the other Party to choose its arbitrator?

6. What happens if the other Party fails to choose its arbitrator?

7. Who chooses the Umpire and how long does it take to choose one?

8. Who chooses the Umpire if the Parties fail to agree upon the candidate?

9. How is the award issued?

Example 1.