Common use of Latent Defects Clause in Contracts

Latent Defects. If any Licensed Adjuvant delivered by Supplier to Purchaser contains a Latent Defect (as defined below), then Purchaser will notify Supplier in writing within five (5) Business Days after the date on which such Latent Defect is first detected by Purchaser. “Latent Defect” means any defect that (a) causes any Licensed Adjuvant supplied by Supplier to Purchaser pursuant to this Agreement to fail to conform with the Adjuvant Specifications, cGMP or a requirement under the Quality Agreement and (b) cannot be ascertained by the exercise of reasonable diligence by Purchaser upon receipt of such Licensed Adjuvant; provided, however, that if Purchaser does not notify Supplier of a Latent Defect in a Licensed Adjuvant within the Licensed Adjuvant’s shelf life (which shall be mutually agreed upon by the Parties), Purchaser shall be deemed to have accepted the Licensed Adjuvants as meeting Adjuvant Specifications and the applicable requirements hereunder, and Purchaser abstains from any right to claim liability against Supplier pursuant to Section 5.1 above or this Section 5.2.