Common use of TERMINATION OF ORDERS Clause in Contracts

TERMINATION OF ORDERS. For the reasons of change of market conditions or because of unforeseen circumstances which lead to the change of the Purchaser’s demand for the Products and Services, the Purchaser has the right to terminate the order and as a result of the termination, the Purchaser shall bear the responsibility to compensate the damage and loss suffered by Supplier. However, the Supplier shall, on the day of its receipt of the notice from the Purchaser to terminate the order, take immediate and effective measures (including but not limited to halt the manufacturing the Products, notify related factories to stop supplying raw materials for the Products, disposal of the manufactured Products to other parties at market price, etc.) in order to minimize the damage. The Purchaser shall not be responsible to compensate the Supplier for its damage if the Supplier has not taken effective measures to minimize the damage. Related matters shall be settled by negotiation of both parties.