Response to Increase Request Clause Samples
The 'Response to Increase Request' clause outlines the procedures and obligations for a party when the other party requests an increase—typically in price, quantity, or scope—under an existing agreement. This clause specifies the timeframe within which a response must be provided, the acceptable forms of response (such as approval, rejection, or a counterproposal), and any documentation or justification required. Its core function is to ensure that requests for changes are handled in a timely and structured manner, reducing misunderstandings and facilitating efficient contract management.
Response to Increase Request. If a Bank, in its sole discretion, agrees to the increase requested by the Account Party pursuant to the Increase Request, it shall give notice to the Agent (a "Notice of Increase") accordingly not less than ten weeks prior to the Increase Date. If a Bank does not give such Notice of Increase by such date, then such Bank shall be deemed to have refused such increase. Nothing shall oblige a Bank to agree to the Increase Request.