Common use of Materials Transfer Clause in Contracts

Materials Transfer. Seller agrees to buy, from time to time, Buyer's on-hand Materials that are in excess of Buyer's own production requirements and are needed for Seller's production within the open Purchase order period. Seller also agrees to sell Materials in excess of Seller's production requirements to Buyer, to any of Buyer's Authorized Agents or anyone else designated by Buyer whose credit worthiness is reasonably acceptable to Seller, who purchases on a letter of credit basis, or whose payment obligations are guaranteed by Buyer. Transfer quantities and payment terms will be mutually agreed on a case-by-case basis. Prices shall be at Buyer's or Seller's, as the case may be, actual purchase price for the transferred Materials.