Common use of Prices and Payment Terms Clause in Contracts

Prices and Payment Terms. Unless PACCAR consents in writing, this purchase order may not be filled at a price higher than that on the face hereof, or if it does not state a price, at a higher price than that previously quoted to or charged to PACCAR. Delay in receiving invoices or errors or omissions on invoices will be considered just cause for withholding payment and will not affect any of PACCAR's cash discount privileges. In addition to any right of setoff provided by law, all amounts due Supplier shall be net of Supplier's indebtedness to PACCAR, its subsidiaries and affiliates, and PACCAR may deduct such indebtedness from any payments. Any reduction in Supplier's costs resulting from refunds, rebates, reductions or drawbacks of freight rates, customs duties (including antidumping and countervailing duties), import taxes, excise taxes and/or sales taxes is to be paid to PACCAR through a price reduction. PACCAR shall be entitled to all customer's duty and import drawback that Supplier can transfer, including rights developed by substitution and rights from Supplier's suppliers. Supplier will inform PACCAR of any such rights and will supply any required documents. To the extent any advance or progress payment by PACCAR to Supplier is used by Supplier to acquire inventory, raw materials, equipment or other components or materials (collectively, the "Collateral"), or any such Collateral is purchased by PACCAR and delivered to Supplier, to be used by Supplier in fulfilling its obligations under this Purchase Order, Supplier hereby grants to PACCAR a security in interest in all such Collateral. Supplier expressly authorizes PACCAR to file financing statements and take any other action of record in Supplier's name reasonably necessary to perfect or otherwise evidence the security interest.