HANSE Take-or-Pay Contract
“Take-or-Pay Contract” is one of the three most used LNG contracts type, see comments below. Take-or-Pay Contract are written agreements between a buyer and seller that obligate the buyer to pay regardless of whether or not the seller delivers the good or service. Generally, this obligation to pay does not involve the full amount due for the product, and protects the seller in the event that the buyer refuses to accept the good or service when delivery is attempted. The clause of the Take-or-Pay Contract which stipulates this obligation for the buyer to pay a compensation in the case he does not take the good or service is commonly called the killing clause.