Volume Commitment Obligations Clause Samples
The Volume Commitment Obligations clause establishes a requirement for one party, typically the buyer, to purchase a minimum specified quantity of goods or services over a defined period. In practice, this means the buyer agrees to order at least a certain volume, and failure to meet this commitment may result in penalties, price adjustments, or other contractual remedies. This clause ensures predictability and stability for the supplier by guaranteeing a baseline level of business, while also helping to allocate risk and clarify expectations between the parties.
Volume Commitment Obligations. Where a Volume Commitment applies, Customer shall pay Verizon the amount of Eligible Charges required to meet the relevant Volume Commitment within the applicable measurement period. If, at the end of any Contract Year or Volume Commitment Period (as applicable), the Eligible Charges Customer has paid are less than the Volume Commitment, then Customer shall pay an Underutilization Charge equal to 75% of the shortfall (or other percentage detailed elsewhere in the Agreement).