Forecast and Binding Forecast Sample Clauses
The "Forecast and Binding Forecast" clause defines the process by which one party provides advance estimates of future requirements or orders, and specifies when those estimates become legally binding commitments. Typically, the clause outlines a schedule for submitting forecasts, distinguishes between non-binding projections and binding commitments, and may set minimum or maximum quantities that must be honored. This mechanism helps both parties plan production, inventory, and logistics more effectively, reducing uncertainty and ensuring that supply meets anticipated demand.
POPULAR SAMPLE Copied 4 times
Forecast and Binding Forecast. No later than the first (1st) day of each calendar quarter, Customer shall supply Lonza with a written forecast showing Customer’s good faith estimated quarterly requirements for Batches for the following [***] period (the “Forecast”). No later than [***] following Lonza’s receipt of a Forecast, Lonza shall provide written notice to Customer of whether it has (as of the date of receipt of the Forecast) capacity available to manufacture the number of Batches forecasted therein and shall provide Customer with an estimated production schedule showing the estimated Commencement Date and delivery date of each Batch. In the event Customer disputes all or a portion of such production schedule provided by Lonza, the Parties agree to negotiate in good faith the disputed portion(s) of such production schedule. Upon agreement between the Parties regarding the production schedule set forth in the Forecast, the first [***] of such Forecast shall be binding on both Parties (the “Binding Forecast”). For the sake of clarity, such Binding Forecast shall include at least the Minimum Quantity as set forth in Section 6.4. If the Binding Forecast exceeds the Capacity Reservation as set forth in Section 6.5, Lonza will use commercially reasonable efforts to include such excess Batch(es) in its production schedule.