Common use of Commercially Reasonable Disposition Clause in Contracts

Commercially Reasonable Disposition. The parties acknowledge that it would be impossible to realize a commercially reasonable price on the disposition of the pledged Collateral by public sale and very difficult to do so by private sale, except on the terms and conditions in Articles IV and V of this Agreement. Therefore, the parties hereto acknowledge that a disposition of the Collateral under Articles IV and V is a commercially reasonable disposition, and agree that the determination of the Purchase Price under Article V is commercially reasonable and that they will be bound by such price.