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Index

Law of Shipbuilding Contracts

Page 389 Index Index Abatement contract price, and, 52 – 53 Acceptance of breach rescission by buyer, and, 212 – 215 Acceptance of vessel delivery protocol, and, 136 – 137 effect, 103 introduction, 109 meaning, 108 method buyer’s election, 109 introduction, 108 presentation of trial results, 109 text of SAJ Form, 109 – 110 Acts of God force majeure , and, 160 – 161 Additional funding contract price, and, 42 – 43 Adjustment of contract price builder’s bonus, 73 delay in delivery accrual of buyer’s rights, 69 – 71 amount of damages, 71 builder’s bonus, 73 introduction, 69 repudiation, and, 73 rescission, and, 71 – 73 text of SAJ Form, 59 – 60 early delivery, 73 excessive fuel consumption generally, 75 – 76 text of SAJ Form, 60 inadequate deadweight generally, 76 text of SAJ Form, 60 – 61 insufficiency of speed generally, 74 – 75 text of SAJ Form, 60 introduction, 61 liquidated damages caps on, 78 – 79 delay in delivery, 69 – 73 excessive fuel consumption, 75 – 76 inadequate deadweight, 76 insufficiency of speed, 74 – 75 introduction, 62 – 69 other deficiencies, 76 – 77 rescission, and, 78 settlement of builder’s liability, 77 other deficiencies, 76 – 77 repudiation, and, 73 rescission, and delay in delivery, and, 71 – 73 generally, 78 text of SAJ Form, 61 settlement of builder’s liability, 77 text of SAJ Form, 59 – 61 AFS 2001 see Anti-Fouling Systems on Ships Convention 2001 Allocation of design risk addressing of risk, 21 – 22 “design life” issues, 23 drawing approvals, 24 introduction, 20 – 21 NEWBUILDCON, 24 no addressing of risk, 22 planning approvals, 24 SAJ Form, 23 standard forms, 23 – 24 Alternative dispute resolution generally, 251 – 252 Ancillary agreements completion bonds, 308 – 309 contract and refund guarantee assignments, 321 – 322 guarantees issued on behalf of builder completion bonds, 308 – 309 enforceability, 309 – 317 introduction, 300 – 301 legal proceedings to prevent payment, 317 – 318 performance, 307 – 308 refunds, 301 – 306 guarantees issued on behalf of buyer introduction, 318 post-delivery, 319 pre-delivery, 318 – 319 introduction, 299 letters of comfort, 320 – 321 options, 322 – 324 performance guarantees, 307 – 308 Page 390 refund guarantees, 301 – 306 specifications, 299 – 300 Anti-bribery generally, 294 – 295 Anti-Fouling Systems on Ships Convention 2001 description and class, and, 32 Appeals dispute resolution, and agreements to waive right, 247 – 248 generally, 246 – 247 Applicable law express choice of law, 282 generally, 281 no express choice of law, 282 – 283 Rome I Regulation, 282 ship conversion contracts, 292 text of SAJ Form, 282 Appointment of buyer’s representatives generally, 84 – 85 introduction, 81 – 82 text of SAJ Form, 80 Approval of plans and drawings generally, 82 – 84 introduction, 81 – 82 NEWBUILDCON, 84 text of SAJ Form, 80 Arbitration alteration of delivery date text of SAJ Form, 240 alternative dispute resolution, and, 251 – 252 appeals agreements to waive rights, 247 – 248 generally, 246 – 247 Brussels I Regulation, and, 240 description and class, and, 34 entry in court text of SAJ Form, 240 expenses text of SAJ Form, 240 Hague Convention, and, 240 introduction, 241 judicial proceedings, and introduction, 250 parallel proceedings and anti-suit injunctions, 250 – 251 London, in agreements to waive right of appeal, 247 – 248 appeals, 246 – 247 back-to-back contracts, 248 constitution of tribunal, 245 costs, 248 enforcement of awards, 249 extension of delivery date of vessel, 248 – 249 introduction, 245 jurisdiction and separability of agreement, 246 other standard provisions, 248 – 249 proceedings, 246 text of SAJ Form, 248 – 249 Lugano Convention, and, 240 modifications, and, 96 – 97 non-technical disputes generally, 243 – 244 introduction, 241 – 242 notice of award text of SAJ Form, 239 proceedings text of SAJ Form, 239 standard form provisions, 241 technical disputes generally, 242 – 243 introduction, 241 – 242 text of SAJ Form, 241 Assignment benefits, 254 burdens, 254 – 255 consent not to be unreasonably withheld, 257 – 258 damages, 256 – 257 general principles benefits, 254 burdens, 254 – 255 conditional, 255 consent not to be unreasonably withheld, 257 – 258 introduction, 246 , 254 prohibitions, 255 – 257 insurance, and, 236 introduction, 253 – 254 novation, 261 prohibitions, 255 – 257 shipbuilding contracts, 259 – 260 standard forms, 261 text of SAJ Form, 253 third party rights, 258 – 259 AWES Form background, 14 introduction, 14 text, 145 Bank charges contract price, and, 46 Bill of sale delivery documentation, and, 140 BIMCO, see also NEWBUILDCON generally, 14 Bridging contracts negotiation of contracts, and, 12 – 13 Brussels I Regulation dispute resolution, and, 240 Builder breach of contract, and, 154 – 155 Page 391 modifications, and generally, 95 – 96 text of SAJ Form, 90 negligence, and, 156 Builder’s bonus liquidated damages, and, 73 Builder’s certificate delivery documentation, and, 140 Builder’s credits contract price, and introduction, 43 – 44 variations to SAJ Form, 44 Builder’s guarantees enforceability disclosure requirement, 311 – 312 effect of variations and breaches, 313 – 317 introduction, 309 – 310 legal proceedings to prevent payment, 317 – 318 Statute of Frauds 1677, 310 – 311 Builder’s guarantees enforceability other formalities, 311 Builder’s liabilities text of SAJ Form, 81 Builder’s lien title to vessel, and, 148 Builder’s risks insurance, and, 231 Builder’s warranty circumstances outside builder’s control, 195 consequential losses, 193 – 194 damage caused to vessel, 186 – 187 defects identified at delivery, 183 exclusion of liabilities, 191 – 196 circumstances outside builder’s control, 195 consequential losses, 193 – 194 express terms, 191 – 193 generally, 191 implied terms, 195 – 196 special losses, 193 – 194 unfair terms, 196 – 199 express terms, 191 – 193 extent of builder’s responsibility, 180 guarantee, 179 guarantee engineer generally, 199 – 200 text of SAJ Form, 180 implied terms, 195 – 196 limitations defects identified at delivery, 183 introduction, 182 loss of use, 185 replaced parts, 185 subcontractors’ warranties, 185 – 186 time limits, 184 loss of use, 185 nature, 181 – 182 notice of defects requirement text of SAJ Form, 179 notice requirement generally, 187 obligation to remedy generally, 187 – 189 recipient, 189 – 191 text of SAJ Form, 179 – 180 replaced parts, 185 special losses, 193 – 194 subcontractors’ warranties, 185 – 186 text of SAJ Form, 179 – 180 time limits, 184 unfair terms, 196 – 197 reasonableness, 197 – 199 Bunker Convention Certificate description and class, and, 33 Buyer default, and see also Buyer’s default builder’s remedies, 227 – 229 definition, 218 – 219 effect, 219 – 221 introduction, 218 notice, 219 rescission by builder, and, 221 – 225 sale of vessel, 225 – 227 text of SAJ Form, 217 – 218 modifications, and generally, 92 – 94 text of SAJ Form, 92 remedies for rescission, and acceptance of repudiatory breach, 212 – 215 introduction, 212 specific performance, 215 – 216 representatives appointment, 84 duty to co-operate, 85 – 86 inspection by, 84 – 85 introduction, 84 – 85 liability, 87 – 89 NEWBUILDCON, 85 obligation to notify defects, 86 – 87 text of SAJ Form, 80 unsuitability, 80 rescission, and see also Rescission by buyer effect, 206 – 211 general right, 202 – 205 introduction, 201 – 202 loss of right, 205 – 206 relevant events, 202 – 205 remedies, 212 – 216 text of SAJ Form, 201 responsibility of, 81 supplies, 235 Buyer’s allowances contract price, and, 54 – 57 Page 392 Buyer’s credits contract price, and, 44 Buyer’s default common law remedies, 227 – 229 damages, 228 definition generally, 218 – 219 text of SAJ Form, 217 effect generally, 219 – 221 text of SAJ Form, 217 interest and charge text of SAJ Form, 217 introduction, 218 notice, 219 repudiation, and, 228 – 229 rescission by builder, and buyer’s supplies, 225 future instalments, 224 – 225 introduction, 221 – 222 prepaid instalments, 222 unpaid instalments, 222 – 224 sale of vessel generally, 225 – 227 text of SAJ Form, 217 – 218 text of SAJ Form, 217 – 218 Buyer’s remedies common law acceptance of builder’s repudiatory breach, 212 – 215 specific performance, 215 – 216 Buyer’s representatives appointment, 80 text of SAJ Form, 80 – 81 facilities, 81 inspection by, 84 – 85 introduction, 81 – 82 liability, 87 – 88 unsuitability, 89 Buyer’s supplies builder’s responsibility text of SAJ Form, 265 buyer’s responsibility text of SAJ Form, 265 generally, 265 – 268 insurance, and, 230 offshore construction, 268 – 269 rescission, and builder, by, 208 – 209 buyer, by, 202 text of SAJ Form, 265 Cancellation insurance, and, 238 Cargo Ship Safety Construction Certificate description and class, and, 32 Cargo Ship Safety Equipment Certificate description and class, and, 32 Cargo Ship Safety Radio Telegraphy (or Telephony) Certificate description and class, and, 32 Characteristics of vessel description and class, and, 27 – 28 China Maritime Arbitration Commission, see also CMAC Form generally, 14 Choice of law express choice of law, 282 generally, 281 no express choice of law, 282 – 283 Rome I Regulation, 282 text of SAJ Form, 282 Classification certificate delivery documentation, and, 138 – 139 Classification of vessel disputes, 34 introduction, 29 modifications, and generally, 94 – 95 text of SAJ Form, 92 regulatory requirements, 31 – 34 environmental, 33 – 34 safety, 32 – 33 requirements, 29 – 34 CMAC Form generally, 14 COLREG 1972, as amended description and class, and, 32 Community of European Shipyards’ Association generally, 14 Completion trials, and, 108 Completion bonds generally, 308 – 309 Completion of contract works rescission by buyer, and, 209 – 211 Compliance with plans and drawings description and class, and, 27 Concurrent delays force majeure , and, 159 Condition of vessel delivery, and, 135 – 136 Conditions precedent and subsequent contractual obligations, and, 273 generally, 272 – 273 introduction, 272 shipbuilding contracts, in, 273 – 274 text of SAJ Form, 272 waiver, 279 – 281 Conduct of trials crewing, 106 – 107 location, 105 navigation, 106 – 107 provisioning, 107 – 108 text of SAJ Form, 102 weather conditions, 106 Page 393 Confidentiality generally, 295 – 296 Consent assignment, and, 257 – 258 Consequential losses quality warranty, and, 193 – 194 Consumable stores protocol delivery documentation, and, 138 Continuous Synopsis Record description and class, and, 33 Contract assignments generally, 321 – 322 Contract price abatement rights, 52 – 53 additional funding, 42 – 43 adjustment of see also Adjustment of contract price introduction, 61 liquidated damages, 62 – 77 text of SAJ Form, 59 – 61 bank charges, 46 builder’s credits introduction, 43 – 44 variations to SAJ Form, 44 buyer’s allowances, 54 – 57 buyer’s credits, 43 – 44 currency, 46 – 47 deduction, 50 – 52 design and supply of drawings, 289 financing for the builder additional financing, 42 – 43 instalment payments, 41 – 42 financing for the buyer builder’s credits, 44 buyer’s credits, 43 – 44 introduction, 43 leasing structures, 44 – 45 financing the newbuild builder, for, 41 – 43 buyer, for, 43 – 45 introduction, 41 subsidies, 45 instalment payments, 41 – 42 introduction, 40 – 41 method of payment, 53 – 54 prepayment, 50 renegotiation, 57 – 58 security, 49 – 50 set-off, 50 – 52 subsidies contract provisions, 46 introduction, 45 OECD framework, 45 – 46 terms of payment abatement rights, 52 – 53 bank charges, 46 currency, 46 – 47 deduction rights, 50 – 52 prepayments, 50 security, 49 – 50 set-off rights, 50 – 52 timing, 47 – 49 text of SAJ Form, 39 – 40 timing of payment, 47 – 49 Contractor’s warranty ship conversion contracts, 330 – 331 Control of Harmful Anti-Fouling Systems on Ships Convention 2001 description and class, and, 32 Copyright drawings generally, 263 – 264 property, 264 text of SAJ Form, 263 generally, 263 – 264 plans generally, 263 – 264 property, 264 text of SAJ Form, 263 specifications generally, 263 – 264 text of SAJ Form, 263 Corruption generally, 294 – 295 Crewing conduct of trials, and, 106 – 107 Currency contract price, and, 46 – 47 text of SAJ Form, 39 Damage to the vessel quality warranty, and, 186 – 187 Damages buyer’s default, and, 228 rescission by buyer, and, 212 – 214 Deadweight generally, 76 text of SAJ Form, 60 – 61 Deduction contract price, and, 50 – 52 “Deemed” delivery generally, 150 Default of buyer common law remedies, 227 – 228 damages, 228 definition generally, 218 – 219 text of SAJ Form, 217 effect generally, 219 – 221 text of SAJ Form, 217 interest and charge, 219 introduction, 218 notice, 219 Page 394 repudiation, and, 228 – 229 rescission by builder, and buyer’s supplies, 225 future instalments, 224 – 225 introduction, 221 – 222 prepaid instalments, 222 – 224 unpaid instalments, 223 sale of vessel generally, 225 – 227 text of SAJ Form, 217 – 218 text of SAJ Form, 217 – 218 Defects delivery, identified at, 183 force majeure , and equipment, 165 machinery, 165 materials, 165 notification, and generally, 86 – 87 introduction, 82 – 84 text of SAJ Form, 80 – 81 quality warranty, and, 183 Delay in delivery builder’s breach of contract or negligence, 154 – 156 causes builder’s breach, 154 – 156 concurrent delays, 159 generally, 157 – 159 negligence, 154 – 156 prior breaches, 158 – 159 text of SAJ Form, 151 concurrent delays, 159 events see also Force majeure excessive delay, 175 – 177 force majeure , 160 – 169 generally, 160 – 177 impact, 172 – 173 notice, 173 – 174 permissible delay, 174 “prevention principle”, 171 – 172 excessive delay generally, 175 liquidated damages, and, 69 – 73 rescission for force majeure , 175 – 177 rescission by reference to “drop dead” date, 177 text of SAJ Form, 152 extension of time, 153 – 154 force majeure see also Force majeure events, 160 – 177 general principles, 153 – 157 rescission for, 175 – 176 insurance, and, 238 introduction, 152 – 153 liquidated damages, and accrual of buyer’s rights, 69 – 71 amount of damages, 71 builder’s bonus, 73 introduction, 69 repudiation, and, 73 rescission, and, 71 – 73 text of SAJ Form, 59 – 60 negligence, 154 – 156 notice, 173 – 174 text of SJ Form, 151 permissible delay generally, 174 text of SAJ Form, 151 prior breaches, 158 – 159 rescission for excessive delay generally, 165 – 177 liquidated damages, and, 69 – 73 text of SAJ Form, 152 text of SAJ Form, 151 – 152 Deliverability application of general principles implied terms excluded by contract terms, 116 – 121 implied terms not excluded by contract terms, 121 – 127 introduction, 115 – 116 compliance with description, 121 – 124 conditions, 112 – 113 fitness for purpose, 125 – 127 general principles application, 115 – 127 conditions, 112 – 113 construction, 113 – 114 innominate terms, 112 – 113 rejection of goods on quality grounds, 114 – 115 warranties, 112 – 113 introduction, 111 – 112 NEWBUILDCON, 119 – 121 principles of construction, 113 – 114 reasonable fitness for purpose, 125 – 127 rejection of goods on quality grounds, 114 – 115 SAJ Form, 116 – 119 satisfactory quality, 124 – 125 statutory implied terms excluded by contract terms, 116 – 121 statutory implied terms not excluded by contract terms compliance with description, 121 – 127 general principles, 121 – 127 introduction, 121 reasonable fitness for purpose, 125 – 127 satisfactory quality, 124 – 125 warranties, 112 – 113 Delivery, see also Institute Clauses for Builders’ Risks (1/6/88) acceptance protocol, 133 bill of sale, 140 Page 395 builder’s certificate, 140 builder’s lien, 148 classification certificate, 138 – 139 commercial invoice, 140 condition of vessel, 135 – 136 consumable stores protocol, 138 “deemed”, 150 delay, and see Delay in delivery deliverability, and see Deliverability documentation see Documentation documents to buyer text of SAJ Form, 132 drawings, 140 early delivery, 135 effect of lex situs , 141 – 142 fuel oil protocol, 138 introduction, 133 inventory protocol, 138 invoice, 140 method text of SAJ Form, 132 non-registration certificate, 140 place generally, 133 text of SAJ Form, 132 plans, 140 removal from shipyard, 150 text of SAJ Form, 133 risk of loss or damage, 149 – 150 text of SAJ Form, 133 tender of vessel text of SAJ Form, 132 time early delivery, 135 generally, 133 – 135 text of SAJ Form, 132 title to vessel builder’s lien, 148 effect of English law, 142 – 148 effect of lex situs, 141 – 142 introduction, 141 no express provision in contract, where, 142 – 144 passing prior to delivery and acceptance, 144 – 148 text of SAJ Form, 133 trading certificate, 138 – 139 trials protocol, 138 vessel’s condition, 135 – 136 warranty of freedom from encumbrances, 139 – 140 Description and class clause characteristics, 27 – 28 classification requirements generally, 29 – 31 introduction, 29 compliance with plans and drawings, 27 dimensions, 27 – 28 dispute resolution, 34 environmental requirements, 33 – 34 hull number, 26 – 27 introduction, 26 performance guarantees, 28 – 29 quality standards and assurance, 34 – 36 registration, 38 regulatory requirements environmental, 33 – 34 introduction, 31 – 32 safety, 32 – 33 subcontracting, 36 – 37 direct payments, 38 text of SAJ Form, 25 – 26 Description of goods delivery time, and, 121 – 124 Design risk allocation addressing of risk, 21 – 22 “design life” issues, 23 drawing approvals, 24 introduction, 20 – 21 NEWBUILDCON, 24 no addressing of risk, 22 – 23 plan approvals, 24 SAJ Form, 23 Dimensions description and class, and, 27 – 28 Discharge of obligations rescission by buyer, and text of SAJ Form, 201 Discrepancies generally, 283 text of SAJ Form, 281 Dispute resolution alteration of date text of SAJ Form, 240 alternative dispute resolution, 251 – 252 appeals agreements to waive right, 247 – 248 generally, 246 – 247 arbitration in London appeals, 247 – 248 back-to-back contracts, 248 constitution of tribunal, 245 costs, 248 enforcement of award, 249 extension of delivery date of vessel, 248 introduction, 245 jurisdiction, 246 other standard provisions, 248 – 249 proceedings, 246 separability of agreement, 246 Brussels I Regulation, and, 240 description and class, and, 34 Page 396 entry in court text of SAJ Form, 240 expenses text of SAJ Form, 240 Hague Convention, and, 240 introduction, 240 – 241 judicial proceedings anti-suit injunctions, 251 introduction, 250 parallel proceedings, 250 – 251 Lugano Convention, and, 240 modifications, and, 96 – 97 non-technical disputes generally, 243 – 245 introduction, 241 – 242 notice of award, 239 proceedings, 239 standard form provisions, 241 technical disputes generally, 242 – 243 text of SAJ Form, 239 – 240 Documentation delivery, and acceptance protocol, 136 – 137 bill of sale, 140 builder’s certificate, 140 classification certificate, 138 – 139 consumables stores protocol, 138 drawings, 140 fuel oil protocol, 138 inventory protocol, 138 invoice, 140 lube oils protocol, 138 non-registration certificate, 140 plans, 140 protocol, 136 – 137 trading certificate, 138 – 139 trials protocol, 138 warranty of freedom from encumbrances, 139 – 140 Drawing approvals allocation of design risk, and, 24 Drawings delivery documentation, and, 140 description and class, and, 27 Duties generally, 262 text of SAJ Form, 262 Early delivery generally, 135 liquidated damages, and, 73 Effective date of contract conditions precedent and subsequent contractual obligations, and, 273 generally, 272 – 273 shipbuilding contracts, in, 273 – 274 waiver, 279 – 280 introduction, 272 reliance upon, 274 – 279 text of SAJ Form, 272 waiver of conditions, 279 – 280 Energy Efficiency Design Index (EEDI) description and class, and, 33 – 34 Entire agreement exclusions of liability for misrepresentation, 286 express exclusions of liability for misrepresentation, 286 generally, 283 – 289 interpretation applicable to shipbuilding contracts, 287 – 288 “non-reliance” provisions, 284 – 286 text of SAJ Form, 281 Environmental protection generally, 293 – 294 Environmental requirements description and class, and, 33 – 34 Equipment defects force majeure , and, 165 Equipment shortage force majeure , and, 164 – 165 Excessive delay generally, 175 – 177 liquidates damages, and, 69 – 73 text of SAJ Form, 152 Excessive fuel consumption generally, 75 – 76 text of SAJ Form, 60 Exclusion of liabilities quality warranty, and circumstances outside builder’s control, 195 consequential losses, 193 – 194 express terms, 191 – 193 implied terms, 195 – 196 introduction, 191 special losses, 193 – 194 unfair terms, 196 – 199 Exclusion of liability generally, 296 – 297 Expenses design and supply of drawings, and, 289 dispute resolution, and, 240 Explosions force majeure , and, 164 Express terms quality warranty, and, 191 – 193 “Financial” defaults rescission by buyer, and, 203 Financing builder, and additional financing, 42 – 43 instalment payments, 41 – 42 Page 397 builder’s credits introduction, 43 – 44 variations to standard wording, 44 buyer, and builder’s credits, 43 – 44 buyer’s credits, 44 introduction, 43 leasing, 44 – 45 buyer’s credits, 44 instalment payments, 41 – 42 introduction, 41 leasing, 44 – 45 newbuild, the builder, for, 41 – 43 buyer, for, 43 – 45 introduction, 41 subsidies, 45 – 46 subsidies contract provisions, 46 introduction, 45 OECD Framework, 45 – 46 Fitness for purpose delivery time, and, 125 – 127 Force majeure causation concurrent delays, 159 introduction, 157 – 158 prior breach, 158 – 159 text of SAJ Form, 151 delaying events accidents beyond control of builder, 166 – 169 acts of God, 160 – 161 acts of princes or rulers, 161 caused by other commitments, 165 – 166 defects in equipment, 159 – 160 defects in machinery, 159 – 160 defects in materials, 159 – 160 delay in vessel construction, and, 165 – 166 delays in delivery, and, 164 – 165 equipment shortage, 164 – 165 explosions, 164 hostilities, 161 – 162 impact, 172 – 173 labour disturbances, 162 – 163 labour shortage, 163 – 164 lockouts, 162 – 163 other delaying events, 169 – 171 requirements of government authorities, 161 SAJ Form, 160 shortage of equipment, 164 – 165 shortage of machinery, 164 – 165 shortage of materials, 164 – 165 strikes, 162 – 163 war, 161 – 162 equipment defects, 165 equipment shortage, 164 – 165 excessive delay, 175 frustration, 177 – 178 general principles breach of contract, 154 – 156 generally, 153 – 157 introduction, 153 negligence, 154 – 156 impact of delaying events, 172 – 173 introduction, 152 – 153 machinery defects, 165 machinery shortage, 164 – 165 materials defects, 165 materials shortage, 164 – 165 notice of delay generally, 173 – 174 text of SAJ Form, 151 permissible delays definition, 151 generally, 174 text of SAJ Form, 151 “prevention principle”, 171 – 172 rescission for excessive delay generally, 175 – 176 by reference to “drop dead” date, 177 text of SAJ Form, 152 ship conversion contracts, 330 text of SAJ Form, 151 – 152 Formation of contracts formal requirements, 5 – 7 introduction, 5 negotiation bridging contracts, 12 – 13 date of contract, 15 final meeting, 13 inception of project, 8 – 9 initial negotiations, 9 introduction, 8 invitations to tender, 9 letters of intent, 9 – 12 NEWBUILDCON, 14 other forms, 14 SAJ Form, 14 standard forms, 13 – 14 Frustration force majeure , and, 177 – 178 Fuel consumption generally, 75 – 76 text of SAJ Form, 60 Fuel oil protocol delivery documentation, and, 138 Future instalments rescission by builder, and, 224 – 225 Goal-based Ship Construction Standards description and class, and, 33 Governing law ship conversion contracts, 281 – 282 Page 398 Greenhouse gas (GHG) emissions description and class, and, 33 Guarantee engineer generally, 199 – 200 text of SAJ Form, 180 Guarantees contract and refund assignments, 321 – 322 description and class, and, 28 generally, 299 issued on behalf of builder completion bonds, 308 – 309 enforceability, 309 – 317 introduction, 300 – 301 performance, 307 – 308 refunds, 301 – 306 issued on behalf of buyer introduction, 318 post-delivery, 319 pre-delivery, 318 – 319 quality warranty, and, 179 text of SAJ Form, 179 , 290 Hostilities force majeure , and, 161 – 162 Hull number description and class, and, 26 – 27 Implied terms quality warranty, and, 195 – 196 Inadequate deadweight generally, 76 text of SAJ Form, 60 – 61 Inception of project negotiation of contracts, and, 8 – 9 Innominate terms delivery time, and, 112 – 113 Instalment payments contract price, and, 41 – 42 Institute Clauses for Builders’ Risks (1/6/88) assignment, 236 buyer’s supplies, 235 latent defects, 234 – 235 Nordic Marine Insurance Plan, 234 overview, 232 – 233 scope of coverage, 233 text, 377 – 388 Insufficiency of speed generally, 74 – 75 text of SAJ Form, 60 Insurance application of recovered amount text of SAJ Form, 230 assignment, 236 “builders’ risks”, 231 buyer’s supplies, 230 cancellation, 238 delay in delivery, 238 duty to insure, 231 – 232 extent of coverage text of SAF Form, 230 introduction, 231 Japanese Builder’s Risks Clause generally, 232 latent defects, 234 – 235 partial losses, 236 – 237 text of SAJ Form, 230 ship conversion contracts, 330 termination of builder’s obligation text of SAJ Form, 231 text of SAJ Form, 230 – 231 total loss, 237 – 238 text of SAJ Form, 230 Intellectual property rights copyright, 263 drawings generally, 264 property, 264 text of SAJ Form, 263 generally, 263 – 264 patents, 263 plans generally, 264 property, 264 text of SAJ Form, 263 specifications, 263 text of SAJ Form, 263 trademarks, 263 Interest buyer’s default, and, 217 International Air Pollution Prevention Certificate description and class, and, 33 International Anti-fouling System Certificate description and class, and, 33 International Sewage Pollution Prevention Certificate description and class, and, 33 International Ship Security Certificate description and class, and, 33 Interpretation clause applicable law express choice of law, 282 introduction, 281 no express choice of law, 282 – 283 Rome I Regulation, 282 – 283 text of SAJ Form, 281 discrepancies, 283 generally, 283 text of SAJ Form, 281 entire agreement express exclusions of liability for misrepresentation, 286 general principles of interpretation, 287 – 288 generally, 283 – 284 Page 399 “non-reliance” provisions, 284 – 286 text of SAJ Form, 281 text of SAJ Form, 281 Inventory protocol delivery documentation, and, 138 Invitations to tender negotiations of contracts, and, 9 Invoice delivery documentation, and, 140 ISM Code description and class, and, 33 ISO 9000 quality standards and assurance, and, 35 – 36 Japanese Builder’s Risks Clause generally, 232 Judicial proceedings dispute resolution, and, 250 – 251 Keel-laying timing of payment, and, 47 – 48 Labour disturbances force majeure , and, 162 – 163 Labour shortage force majeure , and, 163 – 164 Latent defects insurance, and, 234 – 235 Leasing buyer, and, 44 – 45 Letters of comfort generally, 320 – 321 Letters of intent negotiation of contracts, and, 10 – 12 Lex situs title to vessel, and, 141 – 142 Limitation of liabilities generally, 296 – 297 Liquidated damages builder’s bonus, 73 caps on, 78 – 79 delay in delivery accrual of buyer’s rights, 69 – 71 amount of damages, 71 builder’s bonus, 73 introduction, 69 repudiation, and, 73 rescission, and, 71 – 73 text of SAJ Form, 59 – 60 excessive fuel consumption generally, 75 – 76 text of SAJ Form, 60 inadequate deadweight generally, 76 text of SAJ Form, 60 – 61 insufficiency of speed generally, 74 – 75 text of SAJ Form, 60 introduction, 62 – 69 other deficiencies, 76 – 77 repudiation, and, 73 rescission, and delay in delivery, and, 71 – 73 generally, 78 text of SAJ Form, 61 settlement of builder’s liability, 77 text of SAJ Form, 59 – 61 Load Lines Convention 1966 description and class, and, 32 Location conduct of trials, and, 105 Lockouts force majeure, and, 162 – 163 Loss of use quality warranty, and, 185 Losses rescission by buyer, and, 214 Lugano Convention dispute resolution, and, 240 Machinery defects force majeure , and, 165 Marine Construction All Risks (01/09/07) generally, 233 Maritime Labour Convention 2006 (ILO), , 32 MARPOL 73/78 description and class, and, 33 – 34 Materials force majeure , and defects, 165 shortage, 164 – 165 substitution, and generally, 96 text of SAJ Form, 90 – 91 Milestone events timing of payments, and, 47 Modifications builder, by generally, 95 – 96 text of SAJ Form, 90 buyer, by generally, 92 – 94 text of SAJ Form, 90 class, of generally, 94 – 95 text of SAJ Form, 90 declaration and acceleration of work, 101 dispute resolution, 96 – 97 introduction, 91 offshore contracts, 99 – 101 specifications, of builder, by, 95 – 96 Page 400 buyer, by, 92 – 94 dispute resolution, 96 – 97 generally, 92 text of SAJ Form, 90 substitution of materials, 96 text of SAJ Form, 90 – 91 text of SAJ Form, 90 – 91 variation procedures, 97 – 99 Navigation conduct of trials, and, 106 – 107 Negligence force majeure , and, 154 – 156 Negotiation of contracts bridging contracts, 12 – 13 date of contract, 15 final meeting, 13 inception of project, 8 – 9 initial negotiations, 9 introduction, 8 invitations to tender, 9 letters of intent, 9 – 12 NEWBUILDCON, 14 other forms, 14 SAJ Form, 14 standard forms of contract, 13 – 14 NEWBUILDCON adjustment of contract price accrual of buyer’s rights, 69 caps on liquidated damages, 78 – 79 insufficiency of speed, 74 – 75 settlement of builder’s liability, 77 allocation of design risk, 24 anti-bribery, 294 applicable law, 282 approval of plans and drawings, 84 assignment, 261 background, 14 builder’s warranty, and, 181 – 182 consequential losses, 194 damage caused to the vessel, 187 implied terms, 196 nature, 181 – 182 notice requirement, 187 obligation to remedy, 181 – 182 replaced parts, 185 unfair terms, 197 buyer’s default buyer’s supplies, 225 definition, 219 effect, 220 – 221 notice, 219 sale of vessel, 219 buyer’s representatives appointment, 85 inspection by, 85 liability for, 88 unsuitability, 89 buyer’s supplies, 267 – 268 certificate of non-registration, 140 classification certificate, 138 – 139 classification requirements, 31 condition of vessel, 135 – 136 conditions precedent and subsequent, 274 conduct of trials provisioning, 108 weather conditions, 106 confidentiality, 295 consequential losses, 194 contract price currency, 47 introduction, 41 method of payment, 53 – 54 security for payment, 50 set-off and deduction, 51 timing of payment, 47 corruption, 294 currency, 47 damage caused to the vessel, 187 deliverability, 119 – 121 delivery of vessel certificate of non-registration, 140 classification certificate, 138 – 139 condition of vessel, 135 – 136 time, 134 – 135 trading certificate, 138 – 139 discrepancies, 283 dispute resolution alternative dispute resolution, 251 – 252 generally, 241 introduction, 34 technical disputes, 243 duties, 262 entire agreement “non-reliance” provisions, 285 – 286 environmental protection, 293 – 294 exclusions of liability, 296 – 297 explosions, 164 force majeure, , 1 57 explosions, 164 hostilities, 162 lock-outs, 163 notice requirement, 173 – 174 other causes beyond control of builder, 167 permissible delays, 174 strikes, 163 war, 162 hostilities, 162 implied terms, 196 insurance duty to insure, 232 partial losses, 236 – 237 total loss, 237 – 238 intellectual property rights, 264 interpretation clause applicable law, 282 discrepancies, 283 Page 401 entire agreement, 285 – 286 “non-reliance” provisions, 285 – 286 limitations of liability, 296 – 297 liquidated damages, 78 lock-outs, 163 loss of use, 181 modifications builder, by, 96 buyer, by, 92 – 93 class, of, 94 – 95 dispute resolution, 97 “non-reliance” provisions, 285 – 286 notice, 271 notification of defects, 87 passing upon delivery and acceptance, 144 payment of price introduction, 41 method, 53 – 54 security, 50 timing, 47 performance guarantees, 28 preamble, 20 property in plans and drawings, 264 provisioning, 108 quality standards and assurance, 34 – 35 quality warranty, and consequential losses, 194 damage caused to the vessel, 187 implied terms, 196 loss of use, 181 nature, 181 – 182 notice requirement, 187 obligation to remedy, 188 replaced parts, 185 unfair terms, 197 refund guarantees, 306 registration, 38 regulatory requirements, 34 replaced parts, 185 rescission by buyer financial defaults, 203 other defaults, 205 refund by builder, 207 – 208 total loss of vessel, 204 sale of vessel, 226 set-off and deduction, 51 special losses, 194 strikes, 163 subcontracting, 37 suspension of the work, 291 – 292 taxes, 262 text, 335 – 376 title to vessel passing prior to delivery and acceptance, 145 trading certificate, 138 – 139 trials completion, 108 deliverability, 119 – 121 provisioning, 108 unfair terms, 197 war, 162 weather conditions, 106 Non-registration certificate delivery documentation, and, 140 Notice address text of SAJ Form, 270 arbitration awards, and, 239 buyer’s default, and, 219 delay in delivery, and, 173 – 174 force majeure , and, 173 – 174 generally, 270 – 271 language text of SAJ Form, 270 quality warranty, and generally, 187 text of SAJ Form, 17 rescission by buyer, and text of SAJ Form, 201 text of SAJ Form, 270 trials, and, 102 Notification of defects generally, 86 – 87 introduction, 82 – 83 quality warranty, and generally, 187 text of SAJ Form, 179 text of SAJ Form, 80 – 81 Novation assignment, and, 261 OECD framework subsidies regulation, and, 45 – 46 Offshore contracts buyer’s supplies, and, 268 – 269 expansion of workscope, 99 – 100 generally, 131 reduction of workscope, 100 – 101 Options generally, 322 – 324 Partial losses insurance, and generally, 236 – 237 text of SAJ Form, 230 Parties generally, 20 – 21 text of SAJ Form, 19 Passenger Ship Safety Certificate description and class, and, 33 Patents drawings generally, 263 – 264 property, 264 text of SAJ Form, 263 Page 402 generally, 263 – 264 plans generally, 263 – 264 property, 264 text of SAJ Form, 263 specifications, 263 text of SAJ Form, 263 Payment abatement rights, 52 – 53 bank charges, 46 currency, 46 – 47 deduction rights, 50 – 52 instalments, 41 – 42 text of SAJ Form, 40 method, 53 – 54 text of SAJ Form, 40 prepayments, 50 text of SAJ Form, 40 security, 49 – 50 set-off rights, 50 – 52 terms abatement rights, 52 – 53 bank charges, 46 currency, 46 – 47 deduction rights, 50 – 52 prepayments, 50 security, 49 – 50 set-off rights, 50 – 52 timing, 47 – 49 timing, 47 – 48 Performance guarantees description and class, and, 28 – 29 generally, 307 – 308 Permissible delay generally, 174 text of SAJ Form, 151 Place of delivery generally, 133 text of SAJ Form, 132 Plan approvals allocation of design risk, and, 24 Plans delivery documentation, and, 140 description and class, and, 27 Preamble generally, 19 – 20 purpose, 19 text of SAJ Form, 19 Prepaid instalments rescission by builder, and, 222 Prepayment contract price, and, 50 text of SAJ Form, 40 Presentation of results trials, and, 109 Prevention of Collisions at Sea Convention 1972 as amended description and class, and, 32 Prevention of Pollution from Ships Convention 1973 as amended description and class, and, 32 Price abatement rights, 52 – 53 additional financing, 42 – 43 adjustment of see also Adjustment of contract price introduction, 59 liquidated damages, 62 – 77 text of SAJ Form, 59 – 61 bank charges, 46 builder’s credits introduction, 43 – 44 variations to SAJ Form, 44 buyer’s allowances, 54 – 57 buyer’s credits, 44 currency, 46 – 47 deduction, 50 – 52 design and supply of drawings, and, 289 financing for the builder additional funding, 42 – 43 instalment payments, 41 – 42 financing for the buyer builder’s credits, 43 – 44 buyer’s credits, 44 introduction, 43 financing the newbuild builder, for, 41 – 43 buyer, for, 43 – 45 introduction, 41 subsidies, 45 – 46 instalment payments, 41 – 42 introduction, 40 – 41 method of payment, 53 – 54 prepayment, 50 renegotiation, 57 – 58 security, 50 set-off, 50 – 52 ship conversion contracts, 328 – 329 subsides contract provisions, 46 EU framework, 45 introduction, 45 OECD framework, 45 – 46 terms of payment abatement rights, 52 – 53 bank charges, 46 currency, 46 – 47 deduction rights, 50 – 52 prepayments, 50 security, 49 – 50 set-off rights, 50 – 52 timing, 47 – 48 text of SAJ Form, 39 – 40 timing of payment, 47 – 48 Prior breaches force majeure , and, 158 – 159 Provisioning conduct of trials, and, 107 – 108 Page 403 Quality assurance description and class, and, 34 – 36 Quality standards description and class, and, 34 – 36 Quality warranty see Warranty of quality Radio Station Licence description and class, and, 33 Reasonable fitness for purpose delivery time, and, 125 – 127 Refund by builder rescission by buyer, and generally, 206 – 208 text of SAJ Form, 201 Refund guarantees generally, 301 – 306 Registration description and class, and, 38 Regulatory requirements environmental disputes, 33 – 34 introduction, 31 – 32 safety, 32 – 33 Rejection of goods quality, and, 114 – 115 Rejection of vessel effect, 127 – 131 generally, 110 – 111 lawful, 127 – 128 text of SAJ Form, 103 unlawful, 128 – 131 Remedies of defects text of SAJ Form, 179 – 180 rescission by buyer, and acceptance of repudiatory breach, 212 – 215 introduction, 212 specific performance, 215 – 216 Removal from shipyard delivery, and generally, 150 text of SAJ Form, 133 Renegotiation contract price, and, 57 – 58 Replaced parts quality warranty, and, 185 Representatives appointment, 84 – 85 introduction, 81 – 82 liability, 87 – 89 text of SAJ Form, 80 unsuitability, 89 Repudiation buyer’s default, and, 228 – 229 liquidated damages, and, 73 Rescission by builder see also Buyer’s default buyer’s supplies, 225 future instalments, 224 – 225 introduction, 221 – 222 prepaid instalments, 222 unpaid instalments, 222 – 224 Rescission by buyer acceptance of builder’s repudiatory breach, 212 – 215 buyer’s remedies acceptance of repudiatory breach, 212 – 215 introduction, 212 specific performance, 215 – 216 buyer’s right delay in delivery, 202 financial defaults, 203 introduction, 202 other defaults, 204 – 205 technical deficiencies, 203 total loss, 204 buyer’s supplies, 202 common law remedies acceptance of repudiatory breach, 212 – 215 introduction, 212 specific performance, 215 – 216 damages, 212 – 214 delay in delivery, and generally, 175 – 177 liquidated damages, and, 69 – 73 text of SAJ Form, 152 discharge of obligations text of SAJ Form, 201 effect builder’s obligation to refund, 206 – 208 buyer’s supplies, 208 – 209 completion of contract works, 209 – 211 damages, 212 – 214 introduction, 206 title to vessel, 209 excessive delay, and generally, 175 – 177 liquidated damages, and, 69 – 73 text of SAJ Form, 152 financial defaults, 203 force majeure by reference to “drop dead” date, 177 grounds delay in delivery, 202 financial defaults, 203 introduction, 202 other defaults, 204 – 205 total loss, 204 introduction, 201 – 202 liquidated damages, and delay in delivery, and, 71 – 73 generally, 78 text of SAJ Form, 61 loss of rights, 205 – 206 losses, 191 notice text of SAJ Form, 201 Page 404 refund by builder generally, 206 – 208 text of SAJ Form, 201 specific performance, 215 – 216 technical deficiencies, 203 text of SAJ Form, 201 title to vessel, 209 total loss of vessel, 204 Risk of loss delivery text of SAJ Form, 133 generally, 149 – 150 ship conversion contracts, 330 Rome I Regulation applicable law, 282 text of SAJ Form, 282 Safety of Life at Sea Convention 1974 as amended see also SOLAS 1974 description and class, and, 32 Safety Management Certificate description and class, and, 33 SAJ Form see also under individual headings allocation of design risk, 23 approval of plans and drawings, 80 – 81 assignment, 253 background, 14 buyer’s default, 217 – 218 buyer’s supplies, 265 contract price adjustment, 59 – 61 generally, 39 default by buyer, 217 – 218 delays, 151 – 152 delivery extensions of time, 151 – 152 description and class, 25 – 26 dispute and arbitration generally, 241 effective date of contract, 272 force majeure, , 1 51 – 152 guarantee, 290 inspection, 80 – 81 insurance generally, 230 – 231 intellectual property rights, 262 interpretation, 281 modifications, 90 – 91 notice, 270 preamble, 19 quality warranty, 179 – 181 rescission by buyer, 201 sundry provisions, 289 taxes and duties, 262 terms of payment, 39 – 40 trials, 102 – 103 warranty of quality, 179 – 181 Sale of goods legislation nature of contracts, and, 1 – 3 Sale of the vessel buyer’s default, and generally, 225 – 227 text of SAJ Form, 217 – 218 Satisfactory quality delivery time, and, 124 – 125 Scope of works ship conversion contracts, 327 – 328 Sea trials see Trials Sector Understanding on Export Credits for Ships subsidies regulation, and, 45 – 46 Security contract price, and, 49 – 50 Set-off contract price, and, 50 – 52 Settlement of builder’s liability liquidated damages, and, 77 Ship conversion contracts features, 325 – 327 introduction, 325 key terms applicable law, 292 buyer’s security, 329 cancellation, 331 contractor’s warranty, 330 – 331 force majeure , 330 insurance, 330 introduction, 327 price, 328 – 329 risk of loss and insurance, 330 scope of works, 327 – 328 time-frame, 329 – 330 title to works, 330 nature, 327 Ship Energy Efficiency Management Plan description and class, and, 33 Ship Security Plan description and class, and, 33 Shipbuilders’ Association of Japan see also SAJ Form generally, 14 Shipbuilding contracts formation formal requirements, 5 – 7 introduction, 5 negotiation, 8 – 13 nature generally, 1 – 3 sale of goods legislation, 3 – 4 negotiation bridging contracts, 12 – 13 date of contract, 15 final meeting, 13 inception of project, 8 – 9 initial negotiations, 9 introduction, 8 Page 405 invitations to tender, 9 letters of intent, 9 – 12 NEWBUILDCON, 14 other forms, 14 SAJ Form, 14 standard forms, 13 – 14 specifications, 8 – 13 terms anti-bribery, 294 – 295 confidentiality, 295 – 296 corruption, 294 – 295 environmental protection, 293 – 294 liability exclusions and limitations, 296 – 297 suspension of work, 291 – 292 termination for buyer’s convenience, 292 – 293 Shortages force majeure , and equipment, 164 – 165 labour, 164 – 165 materials, 164 – 165 SOLAS 1974 description and class, and, 32 timing of payments, and, 48 Special losses quality warranty, and, 193 – 194 Specific performance rescission by buyer, and, 215 – 216 Specifications description and class, and, 27 – 28 generally, 299 – 300 modification, and builder, by, 95 – 96 dispute resolution, 96 – 97 generally, 92 text of SAJ Form, 90 – 91 modifications, and buyer, by, 92 – 94 Speed generally, 74 – 75 text of SAJ Form, 60 Standard forms of contract allocation of design risk, 23 – 24 introduction, 13 – 14 other forms, 14 SAJ Form, 14 Statutory implied terms excluded by contract terms, 116 – 121 not excluded by contract terms compliance with description, 121 – 124 general principles, 115 – 127 introduction, 121 reasonable fitness for purpose, 125 – 127 satisfactory quality, 124 – 125 Steel cutting timing of payment, and, 47 – 49 Strikes force majeure , and, 162 – 163 Subcontracting description and class, and, 36 – 37 direct payments, 38 quality warranty, and, 185 – 186 Subsidies contract provisions, 46 EU framework, 45 introduction, 45 OECD framework, 45 – 46 Substitution of materials generally, 95 – 96 text of SAJ Form, 90 – 91 Sundry provisions generally, 289 text of SAJ Form, 289 Surplus consumable stores disposition, 103 Suspension of the work generally, 291 – 292 Taxes generally, 262 text of SAJ Form, 262 Technical deficiencies rescission by buyer, and, 203 Technical disputes generally, 242 – 243 introduction, 241 – 242 Tender of vessel delivery, and text of SAJ Form, 132 Terms of payment abatement rights, 52 – 53 bank charges, 46 currency, 46 – 47 deduction rights, 50 – 52 prepayments, 50 security, 49 – 50 set-off rights, 50 – 52 text of SAJ Form, 39 – 40 timing, 47 – 49 Third party rights assignment, and, 258 – 259 Time of delivery early delivery, 135 generally, 133 – 135 text of SAJ Form, 132 Time limits quality warranty, and, 184 Title to vessel builder’s lien, 148 effect of English law introduction, 142 no express provision in contract, where, 142 – 144 passing prior to delivery and acceptance, 144 – 148 passing upon delivery and acceptance, 144 Page 406 effect of lex situs , 141 – 142 introduction, 141 rescission by buyer, and, 209 text of SAJ Form, 133 Title to works ship conversion contracts, 330 Tonnage Measurement Convention 1969 description and class, and, 32 Total loss of vessel insurance, and generally, 237 – 238 text of SAJ Form, 230 rescission by buyer, and, 204 Trademarks drawings generally, 263 – 264 property, 264 text of SAJ Form, 263 generally, 263 – 264 plans generally, 263 – 264 property, 264 text of SAJ Form, 263 specifications, 263 text of SAJ Form, 263 Trading certificate delivery documentation, and, 138 – 139 Trial protocol delivery documentation, and, 138 Trials acceptance of vessel generally, 109 – 110 meaning, 108 method, 108 – 111 text of SAJ Form, 103 completion, 108 conduct crewing, 106 – 107 location, 105 navigation, 106 – 107 provisioning, 107 – 108 text of SAJ Form, 102 weather conditions, 106 crewing, 106 – 107 deliverability application of general principles, 115 – 127 compliance with description, 121 – 124 conditions, 112 – 113 construction, 113 – 114 general principles, 112 – 115 innominate terms, 112 – 113 introduction, 111 – 112 principles of construction, 113 – 114 reasonable fitness for purpose, 125 – 127 rejection of goods on quality grounds, 114 – 115 satisfactory quality, 124 – 125 statutory implied terms excluded by contract terms, 116 – 121 statutory implied terms not excluded by contract terms, 121 – 127 warranties, 112 – 113 disposition of surplus consumable goods text of SAJ Form, 103 effect of acceptance text of SAJ Form, 103 introduction, 103 – 105 location, 105 method of acceptance acceptance of vessel, 109 – 110 buyer’s election, 109 introduction, 108 presentation of trial results, 109 text of SAJ Form, 103 navigation, 106 – 107 notice, 105 offshore contracts, 131 presentation of results, 109 provisioning, 107 – 108 rejection of vessel effect, 127 – 131 generally, 110 – 111 lawful, 127 – 128 text of SAJ Form, 103 unlawful, 128 – 131 text of SAJ Form, 102 – 103 weather conditions generally, 106 text of SAJ Form, 102 Unfair contract terms quality warranty, and generally, 196 – 197 reasonableness, 197 – 199 Unpaid instalments rescission by builder, and, 222 – 224 Variation of contract price, see Adjustment of Contract Price Variation procedures generally, 97 – 99 Vessel’s condition delivery, and, 135 – 136 War force majeure , and, 161 – 162 Warranties delivery time, and, 112 – 113 Warranty of freedom from encumbrances delivery documentation, and, 139 – 140 Page 407 Warranty of quality circumstances outside builder’s control, 195 consequential losses, 193 – 194 damage caused to the vessel, 186 – 187 defects existing on delivery, 183 exclusion of liabilities circumstances outside builder’s control, 195 consequential losses, 193 – 194 express terms, 191 – 193 generally, 191 implied terms, 195 – 196 special losses, 193 – 194 unfair terms, 196 – 199 express terms, 191 – 193 extent of builder’s responsibility, 181 guarantee, 179 guarantee engineer generally, 199 – 200 text of SAJ Form, 180 implied terms, 195 – 196 introduction, 180 – 181 limitations defects existing on delivery, 183 introduction, 182 loss of use, 185 replaced parts, 185 subcontractors’ warranty, 185 – 186 time limits, 184 loss of use, 185 nature, 181 – 182 notice of defects requirement text of SAJ Form, 179 notice requirement generally, 187 obligation to remedy exclusions, 191 – 196 generally, 187 – 189 recipient, 189 – 191 text of SAJ Form, 179 replaced parts, 193 – 194 special losses, 193 – 194 subcontractors’ warranty, 185 – 186 text of SAJ Form, 179 – 180 time limits, 184 unfair contract terms generally, 196 – 197 unfair terms reasonableness, 197 – 199 Weather conditions trials, and generally, 106 text of SAJ Form, 102

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