Common use of Minimum Purchase Requirements Clause in Contracts

Minimum Purchase Requirements. Buyer hereby acknowledges and agrees that the prices set forth in this contract are contingent upon ▇▇▇▇▇'s agreement to purchase the total quantities set forth in the Buyer's request for quote/proposal. If Buyer fails to purchase at 80% of the quantities of goods contained in its request for quote/proposal, ▇▇▇▇▇ agrees that the pricing on the goods delivered to Buyer shall be adjusted retroactively to reflect the impact of lower volume on material pricing, labor efficiencies and other cost and expenses of Seller. ▇▇▇▇▇ hereby agrees to pay Seller such additional sums NET 30 following ▇▇▇▇▇’s receipt of Seller’s invoice. The parties will negotiate in good faith the price, quantity and delivery terms for service parts taking into account the availability and costs of necessary materials, supplies, labor and other costs for equipment, set up, packaging and similar factors. ▇▇▇▇▇ also agrees to purchasing commitments of 6 weeks firm finished goods inventory and 8 weeks fab authorization. In the event of program cancellation, drastic shifts in volume or other volume related fluctuation not directly affected by Seller, ▇▇▇▇▇ agrees to purchase this committed inventory.