Volume Commitment Renewal Sample Clauses
The Volume Commitment Renewal clause defines the terms under which a party agrees to renew its obligation to purchase or use a specified minimum quantity of goods or services for an additional period. Typically, this clause outlines the renewal process, such as automatic renewal unless notice is given, and may specify whether the volume commitment remains the same, increases, or is subject to renegotiation. Its core practical function is to provide predictability and continuity for both parties by ensuring ongoing business and clarifying expectations regarding future purchase volumes.
Volume Commitment Renewal. Volume Commitments auto-renew at the end of the initial Volume Commitment Period, unless a Party notifies the other of its intent not to renew at least 90 days before the end of the Volume Commitment Period. The renewed Volume Commitment and Volume Commitment Period will both be equal to what was in effect at the expiration of the initial Volume Commitment Period. In the event of such non-renewal of the Volume Commitment, Services continue to be governed by the Agreement.