Common use of Nonconforming Orders Clause in Contracts

Nonconforming Orders. Buyer may, from time to time and in good faith, place an Order for a delivery date that is not in compliance with a Conforming Order (each such Order, a “Nonconforming Order”). In the event a Buyer places a Nonconforming Order, Seller may, but shall not be obligated to, accept such Nonconforming Order at the price determined in accordance with Section 4.1. In lieu of accepting such order, Seller may inform the Buyer that Seller is willing to accept the Nonconforming Order, including the proposed delivery date, at a price other than the price determined in accordance with Section 4.1 or with an alternative delivery date. Buyer may then (i) confirm acceptance of the Nonconforming Order at Seller’s proposed price and with Seller’s proposed delivery date or (ii) if Seller’s proposed price was above the price determined in accordance with Section 4.1 or Seller’s proposed delivery date was later than Buyer’s request, acquire the Goods subject to such Nonconforming Order from a third party (x) at a price lower than Seller’s proposed price and/or (y) with a delivery date no later than the later of Buyer’s proposed delivery date or Seller’s proposed delivery date.

Appears in 1 contract

Sources: Supply Agreement (Exterran Corp)

Nonconforming Orders. Buyer may, from time to time and in good faith, place an Order for a delivery date that is not in compliance with a Conforming Order (each such Order, a “Nonconforming Order”). In the event a Buyer places a Nonconforming Order, Seller may, but shall not be obligated to, accept such Nonconforming Order at the price determined in accordance with Section 4.1. In lieu of accepting such order, Seller may inform the Buyer that Seller is willing to accept the Nonconforming Order, including the proposed delivery date, at a price other than the price determined in accordance with Section 4.1 or with an alternative delivery date. Buyer may then (i) confirm acceptance of the Nonconforming Order at Seller’s proposed price and with Seller’s proposed delivery date or (ii) if Seller’s proposed price was above the price determined in accordance with Section 4.1 or Seller’s proposed delivery date was later than Buyer’s request, acquire the Goods subject to such Nonconforming Order from a third party with either or both (xy) at a price lower than Seller’s proposed price and/or (yz) with a delivery date no later than the later of Buyer’s proposed delivery date or Seller’s proposed delivery date.

Appears in 1 contract

Sources: Supply Agreement