In case the Sellers are liable for the discrepancies and a claim has been lodged by the Buyers within the time limit of inspection and quality guarantee period as stipulated in Clause 15 and 16 of this Contract, the Sellers shall settle the claim in one or any combination of the following ways.
(1) Agree to the rejection of the goods and refund to the Buyers the value of the goods so rejected in the same currency as contracted herein, and to bear all direct losses and expenses in connection therewith including interest accrued, banking charges, freight, insurance premium, inspection charges, storage stevedore charges and all other necessary expenses required for the custody and protection of the rejected goods;
(2) Devalue the goods according to the degree of inferiority, extent of damage and amount of losses suffered by the Buyers;
(3) Replace the defective equipment party or wholly of which the replacement shall conform to the specifications, quality, and performance as stipulated in this Contract, and bear all the expenses and direct losses sustained by the Buyers. The Sellers shall, at the same time, guarantee the quality of the replacement for a further period according to Clause 15 of this Contract.