Normal Turnover Clause Samples

The 'Normal Turnover' clause defines the routine and expected sale or disposal of inventory, stock, or assets in the ordinary course of a business’s operations. It typically clarifies that such transactions are not restricted by the agreement and do not constitute a breach of covenants that might otherwise limit asset sales or transfers. For example, a company selling its products to customers as part of its regular business would fall under normal turnover. This clause ensures that day-to-day business activities can continue without unnecessary legal obstacles, preventing operational disruptions and distinguishing regular business from extraordinary asset disposals.