Fixed Quantity Clause Samples
A Fixed Quantity clause establishes a set amount of goods or services that one party is obligated to provide or purchase under a contract. In practice, this means the buyer and seller agree in advance on a specific number of units or a defined volume, and the contract does not allow for adjustments based on future needs or changes in demand. This clause ensures predictability for both parties, as it locks in the quantity to be delivered or received, thereby reducing uncertainty and simplifying planning and logistics.
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Fixed Quantity. Buyer commits to purchasing a fixed amount of product at pre-agreed intervals
Fixed Quantity. Buyer commits to purchasing a fixed amount of product at pre-agreed intervals • Take-or-Pay: Buyer pays for the product whether they take delivery or not, securing producer revenue • Tolling: The buyer provides raw materials and receives the final product, involving them more closely in the production process Facilitates financing by securing a buyer for energy outputs, reducing market risk and stabilizing revenue, which attracts more investors. Guarantees market access and price stability, crucial for operations with significant initial investments, and aids in smoother supply chain integration Secures a market for products from recycled materials or energy, providing financial stability and promoting sustainable waste management practices. Agreed sales price or minimum sales price (depending onstructure) • Sales price can either be pre-agreed or structured as cost pass through in case of tolling agreement • Fixed or minimum plus upside sharing • In case of upside sharing, sharing ratio of upside from minimum price to pre-defined “market price” • Potential inflation linkage • Definition of fixed costs (mostly depreciation of capex), variable cost pass-through (esp. linked to power purchase prices, grid fees, inflation), financing costs and equity return component • Agreement how future subsidies received by seller or buyer, if any, are shared (if at all) • Fixed quantities vs. Range • Take or Pay: Buyer typically has the right not to take off the product but then needs to hold the seller harmless e.g. pay the agreed price and potential additional storage costs or compensate seller if seller has to sell at lower price (e.g. as no sufficient storage capacity is available any more) • Product specification (e.g. min GHG reduction) • Regulatory confirmations (e.g. RED) • Production capacity of facility • Facility availability (% of production capacity) • Including concrete measurements in each case • Caps, limitations etc [ideally mirrored by EPC contract]
Fixed Quantity. (save that each of the calendar years 1995-1999 shall be referred to as a "Fixed Quantity Period" and the quantity of LNG set out for delivery hereunder in each such calendar year shall be referred to as the "Fixed Quantity" for such Fixed Quantity Period); 7.3
Fixed Quantity. Order fulfillment by Supplier of the Fixed Quantity of Product shall be made according to the schedule set forth in Schedule 1 or as otherwise mutually agreed by the parties in writing. The Fixed Quantity of any Product required by any individual Buyer at any order fulfillment shall be subject to adjustment in such Buyer’s sole discretion of up to one hundred ten percent (110%) of the ten (10) week rolling average of the individual Buyer’s purchases of such Product (if less than 10 weeks of purchase activity for such Product by such individual Buyer, then weeks 1 through 9 shall be based on the weekly to date averages). If Supplier fails to fulfill Buyer’s order of the Fixed Quantity of any Product in the quantities and/or by the dates set forth in Schedule 1, then Supplier shall be liable to Buyer for (i) all costs reasonably incurred by Buyer in procuring substitute goods of like kind and quality, including but not limited to any difference in the net price which Buyer was required to pay for such substitute goods and additional freight charges, and (ii) any costs incurred by Buyer as a result of any failure to timely meet any of their customer requirements for the Product, including but not limited to any customer contract penalties, and (iii) any additional rights or remedies otherwise available to Buyer at law, or in equity, or by statute.
Fixed Quantity. This Contract confirms a fixed quantity amount. Any product ordered in excess of the fixed quantity will be priced at Seller’s market price at the time of delivery.
Fixed Quantity. (save that each of the calendar years 1996-1999 shall be referred to as a "Fixed Quantity Period" and the quantity of LNG set out for delivery hereunder in each such calendar year shall be referred to as the "Fixed Quantity" for such Fixed Quantity Period); 7.3 Buyer's Obligation to Take-or-Pay; 7.4 Allocation of Deliveries of Fixed Quantities between Buyer and Other Purchasers; 7.5 Make-Up LNG; 7.7 Allocation for Make-Up LNG and Restoration Quantities; and 7.8