Annual Volume Commitment (AVC) Clause Samples

An Annual Volume Commitment (AVC) clause requires one party, typically the buyer, to purchase a specified minimum quantity of goods or services from the seller within a defined year. This clause often outlines the exact volume required, the measurement period, and any consequences for failing to meet the commitment, such as penalties or make-up rights in subsequent periods. Its core function is to provide predictability and security for the seller by ensuring a baseline level of sales, while also helping both parties plan production and inventory more effectively.
Annual Volume Commitment (AVC). Total Volume Commitment (TVC).
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Annual Volume Commitment (AVC). Customer agrees to pay Verizon the amount of Eligible Charges in each Contract Year that is no less than the AVC identified in the Agreement, for the number of Contract Years/Volume Commitment Period identified in that Agreement. If the Agreement does not identify an AVC or number of Contract Years/Volume Commitment Period, then the applicable number is zero. If, in any Contract Year/Volume Commitment Period, Customer's Eligible Charges are less than the AVC, then Customer will pay: (a) all accrued but unpaid charges incurred by Customer; and (b) an underutilization charge (which Customer hereby agrees is reasonable) equal to 75% of the difference between Customer's Eligible Charges during such Contract Year and the AVC.
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Related to Annual Volume Commitment (AVC)

  • Time Commitment The Advisor shall, and shall cause its Affiliates and their respective employees, officers and agents to, devote to the Company such time as shall be reasonably necessary to conduct the business and affairs of the Company in an appropriate manner consistent with the terms of this Agreement. The Company acknowledges that the Advisor and its Affiliates and their respective employees, officers and agents may also engage in activities unrelated to the Company and may provide services to Persons other than the Company or any of its Affiliates.

  • Minimum Commitment If for a certain Service a minimum commitment has been determined in the Agreement, the Customer guarantees to respect the minimum commitment described in the Agreement during the entire period of the Agreement. If the Customer does not respect this minimum commitment, the Customer shall pay the compensation mentioned in the Agreement. If no compensation has been mentioned in the Agreement, the Customer has to pay the applicable Charges for the respective Service, or the average of the applicable Charges if different Charges are applied for the respective Service, per missing number of its minimum commitment. Services that are timely cancelled by the Customer or Services for which the Customer has paid a cancellation fee , do not, even not partly, release the Customer from its obligation to respect the minimum commitment . Services cancelled as due to Force Majeure and Services cancelled by Lineas for other reasons than Force Majeure, will be considered as a Services ordered and paid for by the Customer. Services cancelled by the Customer or by Lineas because of holidays do not, even not partly, release the Customer from its obligation to respect its minimum commitment.

  • Contract Quantity The Contract Quantity during each Contract Year is the amount set forth in the applicable Contract Year in Section D of the Cover Sheet (“Delivery Term Contract Quantity Schedule”), which amount is inclusive of outages.

  • Contract Year A twelve (12) month period during the term of the Agreement commencing on the Effective Date and each anniversary thereof.