Definition for : Take or pay contract
Take or pay contracts link the owner of the Production facilities (typically for the extraction and/or transformation of energy products) and the Future users whose need for the product is more or less urgent. The users agree to pay a certain amount that will cover both Interest and Principal payments, irrespective of whether the product is delivered and of any cases of force majeure.
(See Chapter 22 Shares of the Vernimmen)
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