Common use of Cancellation of Order Clause in Contracts

Cancellation of Order. Aerojet may, by written notice to Seller, cancel this Order, in whole or in part, due to (a) Seller's material breach of any term of this Order, or Seller's insolvency, or the suspension of business operations or other condition which materially impairs Seller's ability to perform this Order, or (b) at Aerojet's option. Seller shall continue performance of this Order to the extent not cancelled. In the event of cancellation under (a) above (Default): Aerojet may purchase, in a commercially reasonable manner, substitute products or services for those required by this Order and Seller shall be liable for any excess costs of procurement therefore. Aerojet may also require Seller to promptly and reasonably deliver any completed or partially completed Work, and shall have the right to manufacture the unfilled portion of this Order. Notwithstanding the foregoing, Seller shall not be liable to Aerojet for excess reprocurement costs if, except with respect to Seller's subcontractors, Seller's default is due to circumstances beyond its reasonable control and without its fault or negligence. If the failure to perform is caused by a subcontractor but from causes beyond the reasonable control and without the fault or negligence of both Seller and the subcontractor, Seller shall not be liable for excess reprocurement costs unless the supplies or services were reasonably obtainable from other sources in sufficient time to permit Seller to meet the delivery schedule. However, no cause shall constitute an excusable delay hereunder unless Xxxxxx has notified Aerojet in writing of the existence of such condition within ten (10) days of its inception. Further, If a cancellation is commenced under (a) for default and it is later determined that Seller was not in default, the cancellation will be treated as one for Aerojet's convenience under (b) In the event of cancellation under (b) above (Convenience): Seller shall immediately stop work and shall cause its suppliers and subcontractors to immediately stop work. Subject to the terms of this Order, Seller shall be paid a percentage of the Order price reflecting the percentage of the work performed prior to the notice of termination, plus reasonable charges that Seller can demonstrate to the satisfaction of Aerojet, using its normal accounting practices, resulted from the cancellation. Seller shall not be paid for any work performed or costs incurred which reasonably could have been avoided, or for work performed in advance of Seller's requirements hereunder.

Cancellation of Order. Aerojet may, by written notice to Seller, cancel this Order, in whole or in part, due to (a) Seller's ’s material breach of any term of this Order, or Seller's ’s insolvency, or the suspension of business operations or other condition which materially impairs Seller's ’s ability to perform this Order, or (b) at Aerojet's ’s option. Seller shall continue performance of this Order to the extent not cancelled. In the event of cancellation under (a) above (Default): Aerojet may purchase, in a commercially reasonable manner, substitute products or services for those required by this Order and Seller shall be liable for any excess costs of procurement therefore. Aerojet may also require Seller to promptly and reasonably deliver any completed or partially completed Work, and shall have the right to manufacture the unfilled portion of this Order. Notwithstanding the foregoing, Seller shall not be liable to Aerojet for excess reprocurement costs if, except with respect to Seller's ’s subcontractors, Seller's ’s default is due to circumstances beyond its reasonable control and without its fault or negligence. If the failure to perform is caused by a subcontractor but from causes beyond the reasonable control and without the fault or negligence of both Seller and the subcontractor, Seller shall not be liable for excess reprocurement costs unless the supplies or services were reasonably obtainable from other sources in sufficient time to permit Seller to meet the delivery schedule. However, no cause shall constitute an excusable delay hereunder unless Xxxxxx Seller has notified Aerojet in writing of the existence of such condition within ten (10) days of its inception. Further, If a cancellation is commenced under (a) for default and it is later determined that Seller was not in default, the cancellation will be treated as one for Aerojet's ’s convenience under (b) In the event of cancellation under (b) above (Convenience): Seller shall immediately stop work and shall cause its suppliers and subcontractors to immediately stop work. Subject to the terms of this Order, Seller shall be paid a percentage of the Order price reflecting the percentage of the work performed prior to the notice of termination, plus reasonable charges that Seller can demonstrate to the satisfaction of Aerojet, using its normal accounting practices, resulted from the cancellation. Seller shall not be paid for any work performed or costs incurred which reasonably could have been avoided, or for work performed in advance of Seller's ’s requirements hereunder.