Common use of Specification Change Clause in Contracts

Specification Change. From time to time, Purchaser may revise, supplement, or otherwise amend the Specifications. These revised Specifications shall become effective as specified in the Purchase Order after Seller’s receipt of such revision, supplement, or amendment unless Seller provides Purchaser with written notification of objection. Said notification of objection must be received by Purchaser within fifteen (15) days prior to the effective day. If Seller provides a written notification of objection, then both parties shall promptly and in good faith attempt to resolve the objection. If the objection cannot be resolved within thirty (30) calendar days, then Purchaser, in its sole discretion, may: (a) purchase the goods from a third-party supplier, in which case the obligations including, but not limited to, any purchase requirements and/or commitments of Purchaser shall be reduced accordingly; or (b) terminate this Purchase Order and any related agreement with Seller without penalty, liability or further obligation. Seller shall not make any change to any raw material, package material, feedstock, portion or any components of any product, the production process, the production equipment, any documentation or information related in any way to Purchaser’s products or production or the production location(s) without Purchaser’s prior written consent. Purchaser, in its sole discretion, is entitled to reject any such change. Seller shall be liable for any costs or damages incurred by Purchaser as a result of any change made by Seller without obtaining Purchaser’s prior written consent, including, without limitation, costs and damages incurred as a result of any product recall. For the Purpose of this Section 10, “Specifications” means, finished goods and packaging specifications, manufacturing instructions, processing instructions, quality control procedures, finished goods and component performance tests, and other information relating to the manufacture of the goods.