Common use of Nonconforming Material Clause in Contracts

Nonconforming Material. Nonconforming material is a term used to denote raw materials, parts, components, assemblies, and finished goods at any stage of the production cycle in which one or more quality characteristics do not conform to design specifications and Buyer’s requirements. If nonconforming material is identified by the Seller, immediate action must be taken to eliminate the detected nonconformity and prevent delivery to the Buyer. Seller must notify and obtain approval from the Buyer regarding the disposition of any material hereunder found to be nonconforming. Nonconforming material that is corrected must be reverified or retested to ensure conformance to the original requirements or specifications. If any material hereunder is determined to be nonconforming by the Seller following delivery to the Buyer, the Seller must provide timely notification to the Buyer of the nonconformity and the effects, or potential effects, of the nonconformity. Should it become necessary for Buyer to return any nonconforming material hereunder, ▇▇▇▇▇ will return it collect, uninsured, except as provided below, F.O.B. shipping point, at Seller’s expense. ▇▇▇▇▇ will notify the Seller immediately upon rejection of nonconforming material. Should the Seller desire to provide shipping instructions contrary to the above, it shall notify Buyer within a reasonable time but in any event, prior to date of shipment. When it is determined that the Seller is responsible for the nonconforming material, the Seller is required to respond to the Buyer’s request for root cause and corrective action. Failure to respond within the time frame requested shall constitute a material breach of contract.

Appears in 2 contracts

Sources: Commercial Supplier Agreement, Commercial Supply Agreement

Nonconforming Material. Nonconforming material is a term used to denote raw materials, parts, components, assemblies, and finished goods at any stage of the production cycle in which one or more quality characteristics do not conform to design specifications and Buyer’s requirements. If nonconforming material is identified by the Seller, immediate action must be taken to eliminate the detected nonconformity and prevent delivery to the Buyer. Seller must notify and obtain approval from the Buyer regarding the disposition of any material hereunder found to be nonconforming. Nonconforming material that is corrected must be reverified or retested to ensure conformance to the original requirements or specifications. If any material hereunder is determined to be nonconforming by the Seller following delivery to the Buyer, the Seller must provide timely notification to the Buyer of the nonconformity and the effects, or potential effects, of the nonconformity. Should it become necessary for Buyer to return any nonconforming material hereunder, ▇▇▇▇▇ Buyer will return it collect, uninsured, except as provided below, F.O.B. shipping point, at Seller’s expense. ▇▇▇▇▇ Buyer will notify the Seller immediately upon rejection of nonconforming material. Should the Seller desire to provide shipping instructions contrary to the above, it shall notify Buyer within a reasonable time but in any event, prior to date of shipment. When it is determined that the Seller is responsible for the nonconforming material, the Seller is required to respond to the Buyer’s request for root cause and corrective action. Failure to respond within the time frame requested shall constitute a material breach of contract.

Appears in 1 contract

Sources: Purchase Agreement