Common use of Supply Constraint Clause in Contracts

Supply Constraint. If Supplier’s ability to supply Products in accordance with the then-current Forecast is constrained for any reason, Supplier agrees that Supplier will work in good faith to address concerns of Square or Authorized Purchaser. In this circumstance, Supplier will (a) allocate the constrained material or resource so that Supplier is able to fulfill Square’s Purchase Orders on at least a pro rata basis of the constrained material or resource, and (b) immediately escalate the issue to both parties’ management for the purpose of resolving the supply constraint.

Supply Constraint. If Supplier’s ability to supply Products in accordance with the then-then current Forecast is constrained for any reason, Supplier agrees that Supplier will work in good faith to address concerns of Square or Authorized Purchaser. In this circumstance, Supplier it will (ai) allocate the constrained material or resource so that Supplier is able to fulfill SquareCustomer’s Purchase Orders on at least a pro rata basis of the constrained material or resource, and provided that any labor, factory space, capacity and general equipment previously committed to meet the then current Forecast shall be utilized to fulfill Customer’s Purchase Orders prior to fulfilling orders for other customers, and (bii) immediately escalate the issue to both parties’ management for the purpose of resolving the supply constraint.