Minimum Guaranteed Offtake Sample Clauses
The Minimum Guaranteed Offtake clause obligates one party, typically the buyer, to purchase a specified minimum quantity of goods or services from the seller within a defined period. In practice, this means that even if the buyer does not require the full amount, they are still required to pay for or take delivery of the agreed minimum volume, ensuring predictable revenue for the seller. This clause primarily serves to provide financial security and production planning certainty for the seller, while allocating the risk of demand fluctuations to the buyer.
POPULAR SAMPLE Copied 1 times
Minimum Guaranteed Offtake a. The Buyer undertakes to purchase, a minimum quantity of Gas equivalent to eighty five per cent (85%) of the Daily Contract Quantity multiplied by the number of days in a month period (hereinafter referred to as the "Minimum Guaranteed Offtake" or "MGO"). This shall come into force from the Commencement Date. If the Buyer, for reasons other than any declared Force Majeure event, fails to take delivery of MGO, in part or full, the Buyer shall pay for the entire or the balance part of the MGO in accordance with Clause 11.
b. The Seller has no responsibility, whatsoever, in the unwarranted and unforeseen event of the quantity of Natural Gas supply falling below the Minimum Guaranteed Offtake levels or lower, as the case my be, for the agreed supply quantity or any revisions thereof based on mutual agreement.
Minimum Guaranteed Offtake. 5.3.1 From 0600 hours of the Start Date and thereafter throughout the Contract Period Buyer shall take a quantity of Sales Gas in each Month equal to at least eighty percent (80%) of the Adjusted Monthly Contract Quantity (such quantity hereinafter referred as Minimum Guaranteed Offtake or MGO), or Buyer shall be responsible for the payment of the Monthly Deficiency Payment pursuant to Article 5.4.2 below.