Common use of PO CANCELLATION Clause in Contracts

PO CANCELLATION. Snap-on reserves the right to cancel any PO in whole or in part any time. Supplier will cease production immediately upon notice of cancellation from Snap-on for any undelivered Products. Supplier shall use its best efforts to minimize work in progress (WIP) and component inventory. In the event of cancellation, Snap-on will pay for all delivered Products at the purchase price against such PO. Unless the applicable PO was cancelled as a result of Supplier’s failure to meet the requirements of Section 7, Snap-on may reimburse Supplier for WIP and component inventory, based on actual costs incurred by Supplier, subject to a review by Snap-on for validity of any amounts claimed and Supplier’s obligation of mitigation. In no event will Snap-on reimburse for WIP or component inventory that is not supported by the amount that would be required to deliver Products pursuant to the cancelled PO or for any WIP or component inventory that is related in any way to a PO cancelled by Snap-on in accordance with Section 7.

PO CANCELLATION. Snap-on reserves the right to cancel any PO in whole or in part any time. Supplier will cease production related work immediately upon notice of cancellation from Snap-on for any undelivered Products. Supplier shall use its best efforts to minimize work in progress (WIP) and component inventory. In the event of cancellation, Snap-on will pay for all delivered Products at the purchase price against such PO. Unless the applicable PO was cancelled as a result of Supplier’s failure to meet the requirements of Section 7, Snap-on may reimburse Supplier for WIP and component inventory, based on actual costs incurred by Supplier, subject to a review by Snap-on for validity of any amounts claimed and Supplier’s obligation of mitigation. In no event will Snap-on reimburse for WIP or component inventory that is not supported by the amount that would be required to deliver Products pursuant to the cancelled PO or for any WIP or component inventory that is related in any way to a PO cancelled by Snap-on in accordance with Section 7.