How should a contract handle a failed packaging machine acceptance test?
• Contract must grant buyer right to reject on failed FAT, with a capped number of re-FAT attempts.
• Specify measurable criteria: cycle time, seal strength, pass rate; any miss means failure.
• Set seller remediation deadline; overdue triggers daily liquidated damages or buyer termination and refund.
• State seller bears downtime losses and rework freight during failed-acceptance remediation.
• Tie final payment and retention to acceptance; no payment before passing FAT.
• Specify measurable criteria: cycle time, seal strength, pass rate; any miss means failure.
• Set seller remediation deadline; overdue triggers daily liquidated damages or buyer termination and refund.
• State seller bears downtime losses and rework freight during failed-acceptance remediation.
• Tie final payment and retention to acceptance; no payment before passing FAT.