Common use of Material Liability Clause in Contracts

Material Liability. The BUYER assumes liability for material purchased by the MANUFACTURER in support of the [ * ] of a forecast only. Material purchased by the MANUFACTURER to support the [ * ] of the forecast will be either applied to subsequent BUYER requirements or will be purchased at cost from the MANUFACTURER. The BUYER assumes additional liability for specific long lead material as identified in Schedule 7. In cases where material must be purchased in minimum quantities that exceed material liability limits, the BUYER will provide authorization in writing to purchase these minimum quantities.