Minimum Contract Quantity (MCQ Clause Samples
The Minimum Contract Quantity (MCQ) clause sets a baseline amount of goods or services that a buyer is obligated to purchase, or a seller is required to deliver, under a contract. Typically, this clause specifies a fixed number or volume that must be met within a defined period, such as annually or over the contract’s full term. For example, a supplier agreement might require the buyer to purchase at least 10,000 units per year, regardless of actual demand. The core function of the MCQ clause is to provide certainty and security for both parties by ensuring a minimum level of business, thereby helping suppliers plan production and manage inventory while protecting them from unexpectedly low orders.
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Minimum Contract Quantity (MCQ. During the Delivery Period the BUYER shall take and pay for, or pay for if made available but not taken at the Delivery Point not less than the MCQ, which shall be calculated as follows: MCQ = 0.80 x TCQ – D, in case BUYER elects flexible product MCQ = 1.00 x TCQ – D, in case BUYER elects flat product where
