Common use of Option Clause Clause in Contracts

Option Clause. The purchaser retains the right to place orders for additional quantity upto a maximum of 50% of the original contracted quantity at the same rate and conditions of the contract. This option will be available to the purchaser during the original period of contract. Variation may further incr/ decr beyond 50% in case of cost to cost item depending on the price quoted/ accepted for the basic item in first call or subsequent calls. Scheduled quantities will only be finalized after basic item rate is accepted, till then scheduled quantities will be tentative.