Common use of Quantity Limitation Clause in Contracts

Quantity Limitation. During each year of this Agreement, Buyer will purchase the specified Annual Quantity of Products(s) or, if Buyer's requirements are reduced, an annual quantity that bears the same ratio to Buyer's reduced requirements as the specified Annual Quantity bore to Buyer's estimated total requirements as of the date hereof. Seller may, at its option, limit the quantity of any product to be supplied hereunder in any calendar month to the lesser of one-twelfth (1/12) of the specified Annual Quantity or, after the initial three (3) months of each contract year, the average of the monthly quantities delivered during the expired months of that contract year.