Common use of Payment Offset Clause in Contracts

Payment Offset. In a few situations Seller may have a payment obligation to Buyer under this Agreement such as in connection with Seller purchasing Feedstock or Oil from Buyer. In all such situations if Buyer owes Seller other amounts under this Agreement which have not been paid, then Seller may offset the amounts Buyer owes to Seller under this Agreement against the Seller’s payment obligations to Buyer. If Seller exercises such offset right, Seller shall promptly notify Buyer of such offset and the corresponding reduction in Buyer’s payment obligations to Seller.