Termination for Product Failure Clause Samples
The 'Termination for Product Failure' clause allows a party to end the contract if the product provided does not meet specified standards or fails to perform as required. Typically, this clause outlines the criteria for what constitutes a product failure, such as repeated defects, non-compliance with agreed specifications, or inability to achieve performance benchmarks. By including this provision, the contract ensures that parties are not bound to continue a business relationship when the product consistently underperforms, thereby protecting their interests and providing a clear exit mechanism in case of significant product issues.
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Termination for Product Failure. In the event the development, manufacture or commercialization of a Product is abandoned, suspended or materially delayed due to results from clinical trials relating to such Product or notice or other guidance from any Regulatory Authority in the Relevant Jurisdiction relating to such Product, CLIENT may terminate this Agreement (including all applicable Statements of Work) with respect to such Product upon at least two (2) months’ written notice to LONZA referencing this Section 16.4. For the avoidance of doubt, in the event of termination by CLIENT under this Section 16.4, CLIENT shall remain liable for all fees owed pursuant to any outstanding Statement of Work and Binding Purchase Order with respect to such Product, including any applicable Cancellation Payments, during such two-month period.
Termination for Product Failure. Either Party shall have the right to terminate this Agreement with respect to a particular Compound or Licensed Product upon thirty (30) days written notice if nonclinical or clinical evidence about that Licensed Product demonstrates a sufficiently serious adverse risk/benefit profile that further development or commercialization of such Compound or Licensed Products permanently suspended a regulatory authority or other authority of competent jurisdiction in any Major Country of the Territory.