< Return to your search results

Long lead time components and cancelling purchase orders – clause library

Long lead time components may frustrate or disproportionally complicate cancellation of a purchase order prior to the product’s delivery. A clause addressing compensation for components ordered before cancellation may meet both customer’s and supplier’s interests.

The clause provides for a mechanism to smoothen the effects of cancellation (or allows for such cancellation) by providing that the customer shares in its adverse consequences.

Comments and feedback

Terms of Use

I hereby accept (or reconfirm my acceptance of) Weagree’ Terms of use, in which: