Common use of Supplier Default Clause in Contracts

Supplier Default. Should the Buyer consider that the Seller is not executing the Order in accordance with or as stipulated in the Contract; or the Seller has not made sufficient progress to ensure delivery of the Goods by the time stated in the Order, or that such time has already expired; or the Seller has refused to carry out the reasonable instruction of the Purchaser for the execution of Order or is otherwise in breach of its obligations under the Contract. The Buyer may give notice to the Seller specifying the default and requiring the Seller to remedy it within seven days or such longer period as the Buyer may specify. If the Seller fails so to remedy its default then the Buyer may terminate the Order in whole or in part by notice to the Seller with immediate effect. Thereupon the Buyer may itself complete performance or secure such performance by others of that part of the Order which the Seller has failed to perform using for that purpose (making a fair and proper allowance therefor in any payment subsequently made to the Seller) any materials, plant and equipment on the Buyers premises belonging to the Seller. The Buyer shall not be liable to make any further payment to the Seller until the Order has been completed in accordance with the requirements of the Contract, and shall be entitled to deduct from any amount due to the Seller the costs thereof incurred by the Buyer if the total cost to the Company exceeds the amount (if any) due to the Seller, the difference shall be recoverable by the Buyer from the Seller. The Buyer shall not be liable for any loss whatsoever suffered by the Seller as a result of the Buyers action.