Home > Terms > English, UK (UE) > Offtake agreement

Offtake agreement

An agreement entered between a producer and a buyer to buy/sell a certain amount of the future production. It is generally negotiated long before the construction of a facility to guarantee a market for the facility's future production and improve chances of getting financing for the installation concerned.

These agreements are fairly common in the natural resource sector, where capital costs to extract the resources are important. They usually include several protective clauses and can take months to negotiate.

This is auto-generated content. You can help to improve it.
0
  • Part of Speech: noun
  • Synonym(s):
  • Blossary:
  • Industry/Domain: Law
  • Category: Contracts
  • Company:
  • Product:
  • Acronym-Abbreviation:
Collect to Blossary

Member comments

You have to log in to post to discussions.

Terms in the News

Featured Terms

Harry8L
  • 0

    Terms

  • 0

    Blossaries

  • 1

    Followers

Industry/Domain: Manufacturing Category: 3d printing

WinSun

WinSun is a Chinese company that has successfully printed the world's first 3D-printed high-rise. Five-story apartment building is complete with ...

Contributor

Featured blossaries

Intro to Psychology

Category: Education   1 5 Terms

CORNING Gorilla Glass

Category: Technology   1 5 Terms