Output Contract Sample Clauses
An Output Contract is a legal agreement in which a buyer commits to purchasing all of a seller’s production of a specified good or service over a defined period. In practice, this means the seller agrees to sell their entire output exclusively to the buyer, and the buyer is obligated to take and pay for whatever quantity is produced, regardless of fluctuations in demand or production levels. This type of clause provides certainty for both parties: the seller is assured of a market for all output, while the buyer secures a steady supply, thereby reducing the risk of shortages or excess inventory.
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Output Contract. The parties understand that this Agreement is an output contract only, and does not obligate Seller to produce any specific amount of Residuals. Seller may suspend or curtail its production of Residuals without liability in connection with mill outages, changes in operations, shift reduction, downtime, mill closures, changes in market prices or costs, and other similar events within or outside of Seller’s control.
Output Contract. The Buyer shall have entered into a contract agreeing to sell a portion of the product output from the Business to the Company, all as set forth in the attached agreement identified as Schedule 6.2(f). 18
Output Contract. The Company shall have entered into the contract referred to in Section 6.2(f) hereof.