An agreement that obligates the purchaser to take any product that is offered (and pay the cash purchase price) or pay a specified amount if the product is not taken.

an agreement between a buyer and a supplier

Take-or-pay arrangements require the offtaker (client) to pay for the good or service regardless of whether it is needed. Payments under take-or-pay contracts may be set to cover all fixed costs of the project (fixed operation and maintenance costs, debt service, after-tax equity return) or may cover only part of the project's available capacity or outputs.