Common use of Nonconforming Acceptance Clause in Contracts

Nonconforming Acceptance. a) IBM may choose to accept Products which fail to conform to the specifications established in a Product Attachment without prejudice to its right to reject nonconforming items in the future. If IBM so chooses, IBM will notify MSL of its intent to accept nonconforming items. MSL agrees to negotiate in good faith a price reduction for such items based upon IBM's reasonable added expense to correct and otherwise deal with such deficiencies. After the parties agree on a price, IBM will notify MSL that IBM has accepted the nonconforming items. No items for which IBM has issued a notice of nonconformance shall be deemed accepted, except as provided in the first sentence of this Section.

Appears in 4 contracts

Samples: Outsourcing Agreement (Manufacturers Services LTD), Outsourcing Agreement (Manufacturers Services LTD), Outsourcing Agreement (Manufacturers Services LTD)

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