Production Requirements; Required Tolerance Clause Samples
The 'Production Requirements; Required Tolerance' clause defines the standards and acceptable variations for goods or services produced under the contract. It typically specifies the technical or quality benchmarks that must be met, as well as the permissible range of deviation (tolerance) from those standards. For example, it may state that manufactured parts must meet certain dimensions within a specified margin of error. This clause ensures that both parties have a clear understanding of the expected quality and consistency of deliverables, reducing disputes over minor variations and helping to maintain product reliability.
Production Requirements; Required Tolerance. Paddock shall (a) devote the necessary capacity to meet Axcan Pharma’s requirements for the Products as set forth in the forecasts provided to Paddock pursuant to paragraph 2.5.1 (plus twenty-five percent (25%)) in a timely fashion and (b) use Reasonable Commercial Efforts to make available additional production capacity in order to support the changing needs of Axcan’s business.
Production Requirements; Required Tolerance. The Manufacturer shall Formulate and deliver to Warner the Products and devote the necessary capacity to meet Warner’s firm purchase commitments and weekly requirements for the Products in a timely fashion. Throughout the Term of this Agreement, the Manufacturer shall: (i) Formulate and deliver 98% of orders on the delivery date specified within each purchase order, or within 3 Business Days thereof; and (ii) deliver 95% of the quantity ordered by Warner pursuant to each purchase order.
Production Requirements; Required Tolerance. 3.5. Forecasts