How to use the word take-or-pay in a sentence
The supply may be under a take-or-pay or take-and-pay.
Canexus continues to make solid progress with additional potential customers for unit train shipments under multi-year, take-or-pay terms.
However, they can be an expensive way of substituting private debt for public debt if there is a take-or-pay contract involved.
Italy’s Edison S.p.A. has committed, under a ” take-or-pay ” contract, to taking around half (140 Bcf per year) of the natural gas from the WLGP, and to use it mainly for power generation in Italy.
Take-or-pay contract: under this contract the off-taker – on an agreed price basis – is obligated to pay for product on a regular basis whether or not the off-taker actually takes the product.
If the annual contract quantity is confirmed, the buyer is obliged to take and pay for the product, or pay for it even if not taken, in what is referred to as the obligation of take-or-pay contract (TOP).