Contingent Purchase Order Clause Samples
A Contingent Purchase Order is a contractual provision that makes the buyer’s obligation to purchase goods or services dependent on the occurrence of specific conditions or events. In practice, this means the purchase order only becomes binding if certain criteria—such as regulatory approvals, successful product testing, or third-party agreements—are met. This clause helps manage risk for the buyer by ensuring they are not committed to a purchase unless all necessary prerequisites are satisfied, thereby protecting them from unwanted obligations if key conditions are not fulfilled.
POPULAR SAMPLE Copied 15 times
Contingent Purchase Order. Upon successful completion of the Test Plan for the Beta unit installed in the laboratory as set forth in Exhibit A-1, the Company will issue a binding Purchase Order obligating the Company to purchase at least 2 production units of the BioSentry(TM) system. The two production units will be installed in factory locations and operated and tested in accordance with the Test Plan set forth in Exhibit A-1. Upon successful completion of the Test Plan for these two production units, the Company will issue a binding Purchase Order obligating the Company to purchase an additional 15 production units for delivery within 6 months after the completion of the factory tests. The Purchase Orders will contain the terms and conditions set forth in the Quotation attached hereto as Exhibit B and incorporated herein by reference.
Contingent Purchase Order. The parties must obtain approval by the CDHS for installation and operation of the BioSentry(TM) units at the District's treatment plant. The parties also intend to seek a waiver by the CDHS of the requirement for a 0.5 log reduction in Giardia currently required by the CDHS for the District's water treatment plant. The obligation of the District to purchase any BioSentry(TM) units is expressly conditional upon CDHS approval of both installation of the BioSentry(TM) units at the Districts's treatment plant and CDHS approval of a waiver of the requirement for 0.5 log reduction in Giardia at the District's water treatment plant. Upon receipt by the District of written approval from the CDHS for the installation and operation of the BioSentry(TM) units and CDHS approval of a waiver of the 0.5 log reduction in Giardia, the District will issue a binding Purchase Order obligating the District to purchase at least three production units of the BioSentry(TM) system. The Purchase Order will contain the terms and conditions set forth in the Quotation attached hereto as Exhibit B and incorporated herein by reference. Following the purchase of the production units by the District, the parties agree to continue to work together to obtain the desired CDHS waiver. If CDHS does not approve installation of the BioSentry(TM) system in the District's treatment plant or the DDHS does not approve a waiver of 0.5 log reduction in Giardia at the District's water treatment plant, the District shall have the unilateral right to terminate this agreement by written notice to JMAR. JMAR shall remove all BioSentry(TM) units in the plant at is sole cost and expense without causing any damage to the District's water treatment plant and JMAR will not receive any compensation from the District.