Common use of Purchase Order Acceptance Clause in Contracts

Purchase Order Acceptance. Purchase orders shall normally be deemed accepted by Flextronics, provided however that Flextronics may reject any purchase order: (a) if the fees reflected in the purchase order are inconsistent with the parties’ agreement with respect to the fees; (b) if the purchase order represents a significant deviation from the last forecast for the same period, unless such deviation is within the parameters of the Flexibility Table (5.2); or (c) if a purchase order would extend Flextronics’s liability beyond Customer’s approved credit line. Flextronics shall notify Customer of rejection of any purchase order within **** of receipt of such purchase order. Customer shall have the right to purchase any subassembly used in manufacturing a Product from Flextronics at any given time with reasonable expectations on the lead time for delivery. Customer shall submit a purchase order for any subassembly stating a requested delivery date. The price for such subassembly shall be agreed by the parties, but shall be based on the principles described in Section 3.4(a).