Effect of Curtailment Sample Clauses

The "Effect of Curtailment" clause defines the consequences and procedures that apply when a party's obligations or rights under an agreement are reduced, limited, or suspended due to curtailment events. In practice, this clause typically outlines how services, deliveries, or performance will be adjusted if curtailment occurs, such as reducing the quantity of goods supplied or temporarily halting certain activities. Its core function is to provide a clear framework for managing disruptions, ensuring both parties understand their rights and responsibilities when curtailment affects the contract, thereby minimizing disputes and operational uncertainty.