Common use of Excuse for Nonperformance Clause in Contracts

Excuse for Nonperformance. In the event either party to this Agreement is prevented, delayed or rendered impracticable in performing any duty or obligation required by this Agreement due to fire, earthquake, strike, lockout or other labor trouble, acts of terrorism, drought, acts of God, epidemic or disease, orders, rules or regulations or acts of government relating to national defense or prosecution of war, lack of manpower due to war conditions and other national economic conditions, quarantine of plant, herd destruction or disqualification of dairy herds, partial or in whole, brought about by disease, fire, earthquake or other act of God or other causes beyond the reasonable control of either (a “Force Majeure Event”), that party shall not be liable for damages resulting therefrom, incidental, consequential or otherwise. Failure on the part of Seller to deliver or on the part of Buyer to receive Milk for any of the reasons set forth in this Section 14 shall not be deemed a ground for the termination or cancellation of this Agreement; provided, however, if Seller is unable to deliver Demand Milk due to a Force Majeure Event, Buyer may purchase the same from other suppliers, in which event Buyer’s obligation to purchase its requirements of Demand Milk from Seller as provided in Section 1 above shall be temporarily reduced to the extent of any such purchases from other suppliers. The obligation to purchase or sell the requirement of Demand Milk as provided in Section 1 above shall resume upon Seller or Buyer, as the case may be, providing written notice that the event which prevented Seller from delivering Demand Milk to Buyer or which prevented Buyer from receiving Demand Milk from Seller no longer exists. Buyer agrees that the annual Demand Milk requirements as set forth in the attached Schedules, B1 and B2, will not be less than [*Confidential Treatment Requested*] pounds per year or be greater than [*Confidential Treatment Requested*]of Demand Milk per year, provided, however, that the minimum requirement of [*Confidential Treatment Requested*] pounds per year shall not apply during the calendar year 2005. In the event Buyer desires to purchase more than [*Confidential Treatment Requested*] pounds of Demand Milk per year, such pricing for the Demand Milk in excess of the [*Confidential Treatment Requested*] pounds of Demand Milk per year will be negotiated and agreed between Buyer and Seller. In the event Buyer requires less than 80% of the annual volumes of Demand Milk declared on November 1 for the following year, those Demand Milk volumes required by Buyer that are less than 80% of the annual requirements of Demand Milk will be identified and thereafter the amount of the loss/damage on the reduced Demand Milk volumes sustained by Seller shall be calculated and said amount will be reimbursed by Buyer to Seller in the net difference amount actually received for the reduced deliveries of Demand Milk, including class value, premium and freight, compared to the amount Seller would have received from Buyer had Buyer accepted the previously agreed volumes of Demand Milk.

Appears in 1 contract

Sources: Milk Supply Agreement (Eagle Family Foods Inc)

Excuse for Nonperformance. In the event either party to this Agreement is prevented, delayed or rendered impracticable in performing any duty or obligation required by this Agreement due to fire, earthquake, strike, lockout or other labor trouble, acts of terrorism, drought, acts of God, epidemic or disease, orders, rules or regulations or acts of government relating to national defense or prosecution of war, lack of manpower due to war conditions and other national economic conditions, quarantine of plant, herd destruction or disqualification of dairy herds, partial or in whole, brought about by disease, fire, earthquake or other act of God or other causes beyond the reasonable control of either (a “Force Majeure Event”), that party shall not be liable for damages resulting therefrom, incidental, consequential or otherwise. Failure on the part of Seller to deliver or on the part of Buyer to receive Milk for any of the reasons set forth in this Section 14 shall not be deemed a ground for the termination or cancellation of this Agreement; provided, however, if Seller is unable to deliver Demand Milk due to a Force Majeure Event, Buyer may purchase the same from other suppliers, in which event Buyer’s obligation to purchase its requirements of Demand Milk from Seller as provided in Section 1 above shall be temporarily reduced to the extent of any such purchases from other suppliers. The obligation to purchase or sell the requirement of Demand Milk as provided in Section 1 above shall resume upon Seller or Buyer, as the case may be, providing written notice that the event which prevented Seller from delivering Demand Milk to Buyer or which prevented Buyer from receiving Demand Milk from Seller no longer exists. Buyer agrees that the annual Demand Milk requirements as set forth in the attached Schedules, B1 and B2, will not be less than [*Confidential Treatment Requested*] pounds per year or be greater than [*Confidential Treatment Requested*]of Demand Milk per year, provided, however, that the minimum requirement of [*Confidential Treatment Requested*] pounds per year shall not apply during the calendar year 2005. In the event Buyer desires to purchase more than [*Confidential Treatment Requested*] pounds of Demand Milk per year, such pricing for the Demand Milk in excess of the [*Confidential Treatment Requested*] pounds of Demand Milk per year will be negotiated and agreed between Buyer and Seller. In the event Buyer requires less than 80% of the annual volumes of Demand Milk declared on November 1 for the following year, those Demand Milk volumes required by Buyer that are less than 80% of the annual requirements of Demand Milk will be identified and thereafter the amount of the loss/damage on the reduced Demand Milk volumes sustained by Seller shall be calculated and said amount will be reimbursed by Buyer to Seller in the net difference amount actually received for the reduced deliveries of Demand Milk, including class value, premium and freight, compared to the amount Seller would have received from Buyer had Buyer accepted the previously agreed volumes of Demand Milk.]

Appears in 1 contract

Sources: Milk Supply Agreement (Eagle Family Foods Inc)