Take or Pay

	Definition of 'Take or Pay' A provision, written into a contract, whereby one party has the obligation of either taking delivery of goods or paying a specified amount.
	Investopedia explains 'Take or Pay' This is used in some contracts as a method to ensure that the transaction occurs. For example, a Banana farmer will enter into a take or pay contract with a fruit retailer so that the retailer will buy all the bananas from the farmer or pay a provision for not buying them.

Related Definitions

A Review Of Past Recessions

Here we look at the biggest economic declines in the U.S. since the Great Depression.
How Companies Use Derivatives To Hedge Risk

Derivatives can reduce the risks associated with changes in foreign exchange rates, interest rates and commodity prices.
An Introduction To Managed Futures

Their inverse correlation with stocks and bonds make these alternative investments worth getting to know.
The Barnyard Basics Of Derivatives

This tale of a fictional chicken farm is a great way to learn how derivatives work in the market.
How To Invest In Commodities

Find out which futures, options or funds will be your perfect commodity portfolio fit.
Easy Ways To Cut Rental Costs

If rent payments are crippling your finances, then read on to learn how to save your money.

Why Americans Think Bush Is To Blame For The Economy	The Complete Guide To Calculating Your Net Worth		Top Investment Trends For 2013	5 Viable Career Options In 2013
	How Do Internet Browsers Make Money?	Commodities Of The Future	Trending Stocks And The January Effect