Supply Agreement: Take-or-Pay Clause | Practical Law

Supply Agreement: Take-or-Pay Clause | Practical Law

A take-or-pay provision obligating the buyer in a sale of goods contract to either buy and take delivery of a minimum quantity of goods or to pay the seller for any shortfall. This Standard Clause has integrated drafting notes with important explanations and drafting and negotiating tips.

Supply Agreement: Take-or-Pay Clause

Practical Law Standard Clauses w-007-4376 (Approx. 9 pages)

Supply Agreement: Take-or-Pay Clause

by Practical Law Commercial Transactions
MaintainedUSA (National/Federal)
A take-or-pay provision obligating the buyer in a sale of goods contract to either buy and take delivery of a minimum quantity of goods or to pay the seller for any shortfall. This Standard Clause has integrated drafting notes with important explanations and drafting and negotiating tips.