Common use of Repair Limitation Clause in Contracts

Repair Limitation. Philips’ responsibility for repair per event is limited to fifty percent (50%) of any unit of Biomed Equipment’s current fair market value. Fair market value is to be determined by Philips obtaining 3 quotes from aftermarket medical device providers and taking their average. This value becomes the benchmark for determination of repair viability. Should Customer choose to repair a device whose value is estimated to be less than 50% of the repair cost, they will be responsible for any repair cost in excess of fifty percent (50%) of the fair market value of any unit of Biomed Equipment. (Biomed Equipment may be referred to as “equipment” herein.)