Sun. Jun 20th, 2021

City gas distribution

Transporting future fuel

#62 Ship or Pay

1 min read

Ship or pay is a provision, written into a contract, whereby one party has the obligation of either deliver the goods or paying a specified amount.

  • Ship or pay is a type of provision in a purchase contract that guarantees the Buyer a minimum portion of the agreed on payment if the seller does not follow through with actually selling the full agreed amount of goods.
  • Ship or pay provisions can commonly be found in the energy sector, where overhead costs are high.

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © Citygasdistribution |All rights reserved |