Shortfall Credit Calculation Sample Clauses
The Shortfall Credit Calculation clause defines how to determine the amount of credit or compensation owed when there is a shortfall, such as when a party fails to deliver the agreed quantity or quality of goods or services. Typically, this clause outlines the method for quantifying the shortfall, the formula or reference prices used to calculate the credit, and the timing for applying the credit to the affected party’s account. Its core practical function is to ensure that any deficiencies are addressed in a fair and transparent manner, providing a clear mechanism for financial adjustment and reducing disputes over shortfalls.
Shortfall Credit Calculation. If the Actual Annual Yield falls more than [**] percent ([**]%) below the respective Target Yield in a Year, then the shortfall for the Year (the "Shortfall") will be calculated as follows: Shortfall Credit = [**]
Shortfall Credit Calculation. Patheon will use commercially reasonable efforts to maintain AAY levels for the Product above the applicable Target Yield. If the Actual Annual Yield falls more than [***] for less than [***] batch [***] for [***] batches, or [***] for greater than [***] batches below the respective Target Yield in a Year, then the shortfall for the Year (the "Shortfall") will be calculated as follows: Shortfall = [***]
Shortfall Credit Calculation. The parties will agree in each Product Agreement to a specific Loss Tolerance Percentage, which will be used to calculate whether a shortfall in Active Material yield has occurred. If the Actual Annual Yield falls more than the agreed Loss Tolerance Percentage below the respective Target Yield in a Year, then the shortfall for the Year (the "Shortfall") for such Product will be calculated as follows: [*]
Shortfall Credit Calculation. If the Actual Annual Yield falls more than [***] below the respective Target Yield in a Year, then the shortfall for the Year (the "Shortfall") will be calculated as follows: [***]