Common use of Customer’s Remedies Clause in Contracts

Customer’s Remedies. Supplier’s entire liability under the warranties for Products described above shall be for Supplier, at its option and cost, to repair or to replace the affected Product, and, if Supplier is unable to effect such within a reasonable time and Customer has notified Supplier of the breach with the request to remedy the defect within a reasonable time period to no avail (whereby Customer shall grant to Supplier a reasonable number of attempts (but no less than three) to cure the defect, then OEM has the right to reduce the remuneration or to rescind the purchase order for the Product concerned. OEM is entitled to the foregoing rights also without setting a grace period if Supplier has seriously and definitely refused to cure a defect. If OEM rescinds the purchase order, Supplier will refund the amount OEM paid for the affected Product as depreciated on the applicable straight-line device-specific basis (in general over a period of three to five years), upon return of such Product to OEM.