Forecast Clause

Drafting notes

This Precedent forecast clause set provides a pro-customer and pro-supplier version of a clause which requires the customer to provide regular forecasts of its future requirements for goods to the supplier. These clauses are suitable for a business-to-business (B2B) agreement, such a supply of goods agreement, distribution agreement or manufacturing agreement, but may be adapted for other commercial transactions which require a forecast for a given purpose to be provided.

1 Forecast—pro-customer

1.1 The Customer shall notify the Supplier of:

  • 1.1.1 the Customer’s reasonable estimate of its monthly requirements for Goods in each Year on an item by item basis OR in the form set out in Schedule number (Forecast) no later than insert number weeks before the start of that Year; and

  • 1.1.2 any anticipated revisions to that estimate likely to be insert number% more or less than the Forecast as soon as reasonably practicable.

1.2 The Forecast shall not be binding on the Customer and it does not constitute an obligation to purchase Goods.