Materials on Consignment Sample Clauses
The 'Materials on Consignment' clause defines the terms under which one party supplies goods or materials to another party without immediate transfer of ownership, typically for use or resale. Under this arrangement, the recipient holds the materials in their possession but does not pay for them until they are used or sold, and must keep them separate from other inventory, maintain proper records, and insure the goods. This clause ensures that the supplier retains ownership and control over the materials until payment is made, thereby reducing the supplier's risk of non-payment and clarifying the parties' respective rights and responsibilities regarding the consigned goods.
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Materials on Consignment. 6.1 During the term of this agreement, Client will supply Manufacturer with certain materials required for the manufacture of Products ("Consigned Materials"). Consigned Materials shall be in excess of the quantities required to manufacture the quantity of Product ordered, provided such excess is required to take advantage of minimum lot sizes required by Manufacturer to maintain production line efficiency.
6.2 As long as Manufacturer continues to have possession of the material supplied by Client, Client shall retain legal title to all such materials supplied. In the event such materials are used even with loss of identity, the legal title to the resultant products shall remain in Client.
6.3 Consigned Materials shall be kept in a singular location and clearly marked as owned by the Client.
6.4 Consigned materials shall be stored according to the instructions for each material in order to prevent that the material is damaged and that the stated shelf life of the consigned material can be achieved.
6.5 Manufacturer shall submit to Client on a monthly basis, a report on the balance of consigned materials in the possession and control of Manufacturer at its premises in agreed format.
6.6 Client agrees to a % attrition and yield allowance for materials supplied to Manufacturer. Manufacturer shall be liable for all physical shortages in excess of this specified attrition and yield allowance. Client reserves the right to perform a periodic statistical audit of Manufacturer's physical inventory.
6.7 Upon termination of this Agreement and/or business relationship for whatever reasons, Manufacturer shall return the remaining quantity of Consigned Materials to Client.
6.8 Purchase of materials with will be at same price as per originally paid to purchase the parts and this price will be applicable both ways for and Manufacturer.
6.9 Consigned material from need to be depleted before Manufacturer purchases from others.
6.10 Manufacturer will do quarterly stock checks on any consigned part from that they are keeping in their stock both by quantity and value.
6.11 Both and Manufacturer will use Purchase Orders for the usage of Consigned Materials.
Materials on Consignment. Where materials are supplied by HP on consignment:
(a) CM shall be responsible for all forwarding and brokerage costs and customs duties or user fees. CM shall also assist HP with all import formalities and obtain customs clearance for such consigned materials.
(b) As long as CM continues to have possession of the material supplied by HP, HP shall retain legal title to all such materials supplied. In the event such materials are used even with loss of identity, the legal title to the resultant products shall remain in HP.
(c) CM shall submit to HP on a monthly basis, a report on the balance of consigned materials in the possession and control of CM at its premises in an agreed format.
(d) HP reserves the right to perform a periodic statistical audit of CM's physical inventory.
(e) Upon termination of this Agreement and/or business relationship for whatever reasons, CM shall return the remaining quantity of consigned materials to HP in good condition.
Materials on Consignment. Materials on consignment shall remain the property of SSK and designated as such, and shall be stored and managed separately. Reduction in value or loss shall be paid for by the Supplier. Materials on consignment must only be used for SSK orders. In processing and production of this material SSK remains the direct owner of the new or re-formed items. Accounting of the materials shall be made in the format prescribed by SSK. Any materials not required or processed are to be returned free of charge to SSK. The Supplier is required to notify SSK in writing without delay of any faults in the materials on consignment.