Common use of Engineering Charges Clause in Contracts

Engineering Charges. Engineering charges are based on the engineering time required to design a product to the Purchaser's requirements. Payment of the engineering charges does not constitute ownership of a particular design. Since many designs incorporate proprietary or patented techniques, processes, etc. the Seller is normally the only manufacturer capable of producing the design.

Appears in 2 contracts

Sources: Sales Contracts, Terms and Conditions of Sale