Common use of Buyer’s Remedy and Seller’s Obligation Clause in Contracts

Buyer’s Remedy and Seller’s Obligation. 12.1.4.1 The Buyer’s remedy and the Seller’s obligation and liability under Clauses 12.1.1 and 12.1.2 are limited to, at the Seller’s expense and option, the repair, replacement or correction of any Warranted Part which is defective (or to the supply of modification kits rectifying the defect), together with a credit to the Buyer’s account with the Seller of an amount equal to the mutually agreed direct labor costs expended in performing the removal and the reinstallation thereof on the Aircraft at the labor rate defined in Clause 12.1.7.5. The Seller may alternatively, at Buyer’s request, furnish to the Buyer’s account with the Seller a credit equal to (a) the price at which the Buyer is entitled to purchase a replacement for the defective Warranted Part and (b) the mutually agreed direct labor costs expended in performing the removal and the reinstallation thereof on the Aircraft at the labor rate defined in Clause 12.1.7.5.