Common use of Cost of Replacement of Rejected Product Clause in Contracts

Cost of Replacement of Rejected Product. If any delivery or shipment of the Product is rejected by ARIAD SWISSCO following review of the Delivery Documents or a visual inspection or any other alleged Non-Conformance, ARIAD SWISSCO’s duty to pay all amounts payable to ARIAD US in respect of the rejected Product shall be suspended. In the case of Latent Defect Non-Conformance if there is a determination by the independent laboratory or consultant in support of ARIAD US’s Objection Notice, or the Parties otherwise reach agreement that the Product was not Non-Conforming, payment shall then be made by ARIAD SWISSCO If only a portion of a shipment is rejected, ARIAD SWISSCO’s duty to pay the amount allocable to the Non-Conforming portion only shall be suspended.