Supply Agreement Minimum Quantity

The “minimum quantity” clause in distribution agreements deals with how the parties set minimum quantities that the buyer will order, how these quantities will be adjusted over time, and the consequences for the buyer of not reaching the minimum. Determine the minimum order quantities. At least [60] days before the start of each calendar year, the parties shall cooperate to define the minimum order of products [PARTY B] required for each quarter of the coming year (each quarterly order, a “minimum order”). First order. On the date of entry into force of this Agreement, [PART B] shall issue the first order for the products listed in [Appendix A] in the Annex to this Agreement. Non-compliance with the minimum order. If [PART B] does not meet the minimum order for a quarter, [PARTY B] may, after written notification to [PARTY B], either. . Minimum orders. During each calendar quarter, [PARTY B] acquires at least the minimum order. . . .

convert [PARTY B`s] exclusive rights in the territory into non-exclusive rights for the remainder of the lifespan. . . . .