Off-take Contract: what it is and how an offtake agreement works
An agreement for the sale or purchase of products (raw materials) that have not yet been produced or extracted. It is concluded between a manufacturer planning to produce goods in specific volumes and a purchasing company (off-taker) intending to acquire these goods for resale or further processing.
The essence of the contract is that the buyer finances the production specifically for its own needs and undertakes to pay for the goods even if the demand later disappears.
Synonyms: offtake agreement, offtake contract
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