Monthly Payment Obligation Clause Samples
The Monthly Payment Obligation clause requires a party to make regular payments on a monthly basis as specified in the agreement. Typically, this clause outlines the amount due each month, the due date for each payment, and the acceptable methods of payment. By establishing a clear schedule and expectations for payment, this clause ensures consistent cash flow and helps prevent disputes over missed or late payments.
Monthly Payment Obligation. (a) If in any Month the difference between MTOPQ and quantity of Gas offtaken by Buyer during the Month is positive, such quantity of Gas shall be called “MGNT Quantity”. Buyer shall pay to the Sellers an amount equal to the MGNT Quantity multiplied by arithmetic average of the Sales Gas Price during the Month (“MGNT Amount”) and shall be adjusted by way of a debit note issued along with applicable sales tax liability. The rate of exchange to be applied to convert the MGNT amount calculated in USD to INR shall be as per Clause 10.5. The value arrived at (after the adjustment) would be treated as the actual amount receivable towards the supply of Gas to the Buyer.
(b) If during a Month, the Buyer has offtaken Gas quantities equal to or greater than MTOPQ, then no MGNT Amount will be charged to the Buyer.