take or pay
The term 'take or pay' is commonly used in contractual agreements to ensure that sellers receive payment even if the buyer does not take delivery of the goods or services.
🇺🇸 US Voice:
🇬🇧 UK Voice:
Definition
C1Contracts
(technical, legal)A contractual clause requiring the buyer to either accept the goods or services or make a specified payment if they do not.
Example
- The company signed a take-or-pay agreement to secure a steady supply of raw materials.
- Under the take-or-pay clause, the buyer must pay for the electricity even if it is not consumed.
Similar
Terms that have similar or relatively close meanings to "take or pay":
take it or leave itpay the freightbuy and pay forpay the piper