Changes and Cancellations. The provisions in Paragraphs 5.1–5.6 are only applicable in the event the Products are manufactured exclusively for the Buyer and for such work as is mentioned in Paragraph 3. 5.1 With regard to what the Parties may reasonably have expected at the time the Agreement was executed, the Purchaser shall have the right to demand changes in the Product quality and/or quantity, as well as the delivery date. 5.2 If the Supplier finds that a change is necessary, the Purchaser shall be notified in writing within a reasonable period of time. 5.3 All changes must be approved by the Purchaser through a written acknowledgment of the changes before the Supplier initiates the changes. 5.4 When the Purchaser requests a change, the Supplier shall, within a reasonable period of time, submit a written acknowledgment in which the Supplier describes the changed Product. The Supplier shall also provide a written estimate of how the change affects the agreed price and schedule. 5.5 The compensation for the changes shall be equal in proportion to the prices, standards and charges governed by the Agreement or to the original price level in the Agreement. If such a change results in a cost reduction for the Supplier, the Buyer shall be offered a reasonable price reduction. 5.6 If the Parties are unable to agree on a cost reduction or cost increase or other consequences as a result of the change, the Supplier shall, upon request from the Purchaser, implement the change without waiting for the dispute to be resolved. 5.7 The Buyer is entitled to cancel the Product or parts of the Product with immediate effect, by providing written notice to the Supplier. After such cancellation, the Buyer shall only bear the documented and necessary costs incurred as a direct result of the cancellation.
Appears in 3 contracts
Sources: Purchase Agreement, Purchase Agreement, Purchase Agreement