Characteristics of Take-or-Pay Clauses and Circumstances for Use: Dr. Guillermo Sabbioni Discusses in Recent Oil, Gas & Energy Law Article

Senior Associate Dr. Guillermo Sabbioni has coauthored an article published in Oil, Gas & Energy Law, “Take-or-Pay Clauses: Should I Stay, or Should I Go?”

Take-or-pay (ToP) provisions, often used in long-term offtake and supply agreements, provide that buyers must pay for specified quantities of a good or service from a seller, even if the buyer does not need or is not willing to take those full quantities. In the article, the authors outline the defining characteristics of ToP provisions, the projects they are applied to, and the circumstances in which the utilization of such provisions is not appropriate.

The full article is available on the Oil, Gas & Energy Law website with a subscription.