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Agreement Take

These examples are automatically selected from different online sources of information to reflect the current use of the word “agreement.” The opinions expressed in the examples do not reflect the views of Merriam-Webster or its publishers. Send us comments. The offtake agreements also contain standard clauses that include recourse – including penalties – each party has in case of violation of one or more clauses. Note: Under common law, the agreement is a necessary part of a valid contract. Under the Single Code of Trade, paragraph 1-201 (3), the agreement is the good deal of the contracting parties, as they are explicitly presented by their language or implicitly by other circumstances (as transactions). Taketake agreements can also provide an advantage to buyers and function as a way to secure goods at a specified price. This means that prices are set for the buyer before the start of manufacturing. This can be used as a hedge against future price changes, especially when a product becomes popular or a resource becomes scarcer, so demand trumps supply. It also guarantees that the requested assets will be delivered: the execution of the order is considered an obligation of the seller in accordance with the terms of the taketake contract. An acquisition agreement is an agreement between a manufacturer and a buyer to buy or sell parts of the manufacturer`s future products. A taketake contract is normally negotiated before the construction of a production site, such as. B a mine or a factory, to ensure a market for its future production.

Taketake agreements are often used in the development of natural resources, where the cost of capital for resource extraction is high and the company wants a guarantee that part of its product will be sold. Outside the oil and gas context, contractual terms of “taking or paying” are often dismissed by the courts as unenforceable penalties. The courts consider them to be “liquidated compensation clauses,” which must be based on an appropriate reconciliation of the actual harm suffered by one party as a result of the other party`s infringement. “Take or pay” generally does not meet this standard. In addition to providing a guaranteed market and a source of supply for its product, an acquisition agreement allows the manufacturer/seller to guarantee a minimum result for its investment. Because taketake agreements often help secure funds for the creation or extension of a facility, the seller can negotiate a price that guarantees a minimum level of return on associated products and thus reduces the risk associated with the investment. Average English agreement, borrowed from the Anglo-French agreement, approval, of the agreement “to please, to consent to a non-profit” – a take-or-pay contract is a rule that structures negotiations between companies and their suppliers. With this type of contract, the company either withdraws the product from the supplier or pays a fine to the supplier. For every product the company takes, they agree to pay the supplier a certain price, say $50 a tonne. In addition, within an agreed cap, the company must also pay the supplier for products it does not take.

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