Common use of Purchase Order Cancellation Clause in Contracts

Purchase Order Cancellation. All cancellation of Purchase Orders by Distributor shall be in writing and are available only for Purchase Orders not yet shipped. If Distributor cancels a Purchase Order, which has been accepted by G MEDICAL, Distributor shall reimburse G MEDICAL at its first demand for any cost incident to such Purchase Order incurred by G MEDICAL prior to the time it was informed of the cancellation.