Purchaser-Supplied Components Clause Samples
The Purchaser-Supplied Components clause defines the responsibilities and requirements when the buyer provides certain materials, parts, or components to the seller for use in the production or assembly of goods or services. Typically, this clause outlines the specifications, delivery timelines, and quality standards that the purchaser must meet, as well as the seller’s obligations to inspect and notify the purchaser of any defects or shortages. Its core function is to clarify the division of responsibility and risk between the parties, ensuring that both sides understand their roles and obligations regarding supplied components, thereby reducing the potential for disputes or delays.
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Purchaser-Supplied Components. In the event Supplier has a shortage of components for Products, Purchaser may, at its discretion, supply components to Supplier at Supplier’s expense upon the written consent of Supplier and only in such amounts as are necessary for firm orders then placed by Purchaser. Such components, including provision for failed parts, shall be delivered to Supplier not later than four (4) weeks prior to the scheduled Delivery Date for the related Products to Purchaser. Should Purchaser be unable to meet Purchaser’s requirements for delivery of Products, Purchaser may at its option require Supplier to either: (i) ship Products to Purchaser absent the missing components on or after seven (7) days from the scheduled Delivery Date; or (ii) hold the Products pending receipt of such components from Purchaser. Under these circumstances, Purchaser will give written notification to Supplier prior to the scheduled Delivery Date. Nothing in this Section relieves Supplier of its other obligations under this Agreement.