Payment Upon Consumption Model Payment Clause Samples
The Payment Upon Consumption Model clause establishes that payments are made based on the actual usage or consumption of goods or services, rather than on a fixed or upfront basis. In practice, this means that the customer is billed according to the quantity of resources used, such as hours of service, units of product, or data consumed, typically tracked and invoiced at regular intervals. This approach ensures that the customer only pays for what they actually use, providing flexibility and cost efficiency, and helps avoid overpayment or underutilization of contracted resources.
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Payment Upon Consumption Model
Payment. Upon Consumption means a payment process by which Supplier would retain title of all inventory in transit to Applied and until such time as Applied has fully integrated such inventory into the manufacturing process. At such point, Applied would acquire title to the inventory and would be obligated to pay Supplier for the inventory. Supplier would be paid for such inventory upon the full integration of such inventory into the manufacturing process or within a minimum period of time from the commencement of the integration process. Implementation of the Payment Upon Consumption process will be by mutual agreement of the parties. Supplier will not unreasonably withhold acceptance of a Payment Upon Consumption model.