Take or Pay (TOP) is a common provision of the contract for the gas business in energy industry, in which one party has the obligation of either takes the product from the supplier or pays a specified amount.
Reference Definition by Gas Strategies: Take or Pay (TOP) is a common provision in gas contracts under which, if the Buyer’s annual purchased volume is less than the Annual Contract Quantity minus any shortfall in the Seller’s deliveries, minus any Downward Quantity Tolerance, the Buyer pays for such a shortfall as if the gas had been received. The Buyer may have the right in subsequent years to take the gas paid for but not received, either free or for an amount to reflect changes in indexed prices.
Related Definitions in the Project: The Project Management; The Project Contract
