Common use of Changes or Cancellations Clause in Contracts

Changes or Cancellations. AOC may change or cancel items of Equipment and Software prior to shipment. If AOC issues a Change Order or other mutually agreed upon form causing a delivery delay or cancels an order less than 20 Days prior to scheduled shipment, AOC may be subject to a restocking charge, provided that imposing such charges is part of Contractor’s existing policies. Such charges would be equal to Contractor’s actual costs of restocking, which shall in any case be no greater than five percent of the Charges for the Equipment being delayed or cancelled.