Common use of Failure to comply with Specifications Clause in Contracts

Failure to comply with Specifications. 8.1.1.1 If any milk supplied by Supplier fails to comply with the Specifications (Defective Milk) then the Purchaser may elect whether to: (a) apply the applicable Quality Deduction to the Price (Quality Discounted Price) and accept and purchase the Defective Milk at the Quality Discounted Price; or (b) accept and purchase the Defective Milk at the Price; or (c) reject and not purchase the Defective Milk; and/or (d) suspend future Collections of the Supplier’s milk until the Supplier satisfies the Purchaser (acting reasonably) that the milk to be supplied complies with the Specifications; and/or (e) require the Supplier to submit a corrective action plan; and/or (f) conduct further testing of the Supplier’s milk without prior notice to the Supplier. 8.1.1.2 If the Purchaser rejects the Defective Milk, as soon as practicable after the Purchaser rejects the Defective Milk, the Purchaser must give the Supplier written notice of the rejection including: (i) the reasons for the rejection; and (ii) the consequences for the Supplier of the rejection (including any costs and fees payable by the Supplier arising as a result of the rejection). 8.1.1.3 If the Collection of Defective Milk has occurred, the Supplier must arrange for the disposal of the Defective Milk at the Supplier’s cost. 8.1.1.4 If the Collection of Defective Milk has occurred and the Defective Milk has been commingled with other milk, including milk from other suppliers (for example, in a tanker) (Spoiled Milk), the Supplier is liable to compensate: (a) the Purchaser; and (b) if applicable, the suppliers or owners of the Spoiled Milk, for any loss or damage arising from the Defective Milk or Spoiled Milk, including the cost of the Spoiled Milk, and the Collection costs for the Defective Milk and Spoiled Milk. The Purchaser may elect to deduct these amounts from future payments to the Supplier. 8.1.1.5 If Collection of Defective Milk has not occurred, the Supplier will arrange for the disposal of the Defective Milk at the Supplier’s cost.

Failure to comply with Specifications. 8.1.1.1 If any milk supplied by Supplier fails to comply with the Specifications (Defective Milk) then the Purchaser may elect whether to: (a) apply the applicable Quality Deduction to the Price (Quality Discounted Price) and accept and purchase the Defective Milk at the Quality Discounted Price; or (b) accept and purchase the Defective Milk at the Price; or (c) reject and not purchase the Defective Milk; and/or (d) require the Supplier to replace the Defective Milk with milk that complies with the Specifications within 24 hours; or (e) if the Purchaser requires the Supplier to replace the Defective Milk in accordance with clause 8.1.1.1(d) and the Supplier fails to do so, then the Purchaser may source milk to replace the Defective Milk from a third party and the Supplier must pay the Purchaser for all incremental costs and expenses associated with sourcing the replacement milk from the third party; and/or (f) suspend future Collections of the Supplier’s milk until the Supplier satisfies the Purchaser (acting reasonably) that the milk to be supplied complies with the Specifications; and/or (eg) require the Supplier to submit a corrective action plan; and/or (fh) conduct further testing of the Supplier’s milk without prior notice to the Supplier. 8.1.1.2 If the Purchaser rejects the Defective Milk, as soon as practicable after the Purchaser rejects the Defective Milk, the Purchaser must give the Supplier written notice of the rejection including: (i) the reasons for the rejection; and (ii) the consequences for the Supplier of the rejection (including any costs and fees payable by the Supplier arising as a result of the rejection). 8.1.1.3 If the Collection of Defective Milk has occurred, the Supplier must arrange for the disposal of the Defective Milk at the Supplier’s cost. 8.1.1.4 If the Collection of Defective Milk has occurred and the Defective Milk has been commingled with other milk, including milk from other suppliers (for example, in a tanker) (Spoiled Milk), the Supplier is liable to compensate: (a) the Purchaser; and (b) if applicable, the suppliers or owners of the Spoiled Milk, for any loss or damage arising from the Defective Milk or Spoiled Milk, including the cost of the Spoiled Milk, and the Collection costs for the Defective Milk and Spoiled Milk. The Purchaser may elect to deduct these amounts from future payments to the Supplier. 8.1.1.5 If Collection of Defective Milk has not occurred, the Supplier will arrange for the disposal of the Defective Milk at the Supplier’s cost.

Failure to comply with Specifications. 8.1.1.1 8.1.1 If any milk Milk supplied by Supplier fails to comply with the Specifications (Defective Milk) then the Purchaser may elect whether to: (a) 8.1.1.1 apply the applicable Quality Deduction to the Price (Quality Discounted Price) and accept and purchase the Defective Milk at the Quality Discounted Price; or (b) 8.1.1.2 accept and purchase the Defective Milk at the Price; or (c) 8.1.1.3 reject and not purchase the Defective Milk; and/or. (d) 8.1.2 In addition to clause 8.1, the Purchaser may also: 8.1.2.1 suspend future Collections of the Supplier’s milk Milk until the Supplier satisfies the Purchaser (acting reasonably) that the milk Milk to be supplied complies with the Specifications; and/or; (e) 8.1.2.2 require the Supplier to submit a corrective action plan; and/or (f) 8.1.2.3 conduct further testing of the Supplier’s milk Milk without prior notice to the Supplier. 8.1.1.2 8.1.3 If the Purchaser rejects the Defective Milk, as soon as practicable after practicableafter the Purchaser rejects the Defective Milk, the Purchaser must give the Supplier written notice of the rejection including: (i) 8.1.3.1 the reasons for the rejection; and (ii) 8.1.3.2 the consequences for the Supplier of the rejection (including any costs and fees payable by the Supplier arising as a result of the rejection). 8.1.1.3 8.1.4 If the Collection of Defective Milk has occurred, the Supplier must arrange for the disposal of the Defective Milk at the Supplier’s cost. 8.1.1.4 8.1.5 If the Collection of Defective Milk has occurred and the Defective Milk DefectiveMilk has been commingled with other milkMilk, including milk Milk from other suppliers (for example, in a tanker) (Spoiled Milk), the Supplier is liable to compensate: (a) 8.1.5.1 the Purchaser; and (b) 8.1.5.2 if applicable, the suppliers or owners of the Spoiled Milk, for any loss or damage arising from the Defective Milk or Spoiled Milk, including the cost of the Spoiled Milk, and the Collection costs for the Defective Milk and Spoiled Milk. The Purchaser may elect to deduct todeduct these amounts from future payments to the Supplier. 8.1.1.5 8.1.6 If Collection of Defective Milk has not occurred, the Supplier will arrange for the disposal of the Defective Milk at the Supplier’s cost.