Released Inventory Sample Clauses
The Released Inventory clause defines the terms under which inventory that is no longer required or has been released from a contractual obligation is handled between the parties. Typically, this clause outlines the process for identifying, managing, and disposing of such inventory, which may include options for the supplier to resell, repurpose, or return the goods, and may specify any associated costs or responsibilities. Its core function is to clarify the rights and obligations regarding surplus or unused inventory, thereby preventing disputes and ensuring efficient resolution of excess stock issues.
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Released Inventory. If Seller has not obtained the full release regarding Inventory from a party set forth on Item B of Schedule 5(f) prior to the Date of Inventory (such party from which a full release has not been obtained, a “Restricted Party”), the Inventory acquired by Seller pursuant to its manufacturer agreement with such Restricted Party (“Restricted Inventory”) shall not be an Asset under this Agreement on the Date of Inventory; provided, however, that if, between the Date of Inventory and the Date of True-Up Inventory, Seller obtains the full release regarding Inventory from such Restricted Party, the Inventory acquired by Seller pursuant to its manufacturer agreement with such Restricted Party (“Released Inventory”) shall be an Asset under this Agreement on the Date of True-Up Inventory and subject to Sections 4(d) and 4(e) above. For the avoidance of doubt, if Seller requests a full release from a Restricted Party, and such Restricted Party rejects such request, Buyer shall have no obligation to purchase such Inventory and Seller shall immediately be permitted to return, transfer or destroy such Inventory as determined by Seller in its sole discretion.