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Glite Dictionary
📊 Amount taken 📄 A purchase contract 🔌 A supply outlet
offtake

offtake

9.9
A contract where a buyer agrees to buy a producer's future products
  • noun
  • /ˈɔfˌteɪk/
  • Specialized
translation icon : contrato de compra
  • This new investment includes an offtake deal that commits the buyer to purchase half of the project's output for five years.

Examples

  • They call them rare earth elements, like the only producing rare earth mine in the United States now is in Mountain Pass, CA And all the offtake goes to China.

  • Under the terms of the offtake contract, the buyer will purchase a set quantity of the product every month.

  • They have committed to a project in Oklahoma with a floor offtake price of US$2.35/MMBtu starting in 2011.

    Blog text (32)

  • The company secured an offtake agreement guaranteeing the sale of its production to a major retailer.

Synonyms

purchase contract
vsofftake
  • Formal
1 3.3

A legal agreement between a buyer and a seller that explains the terms of a sale

focuses on a future buying commitment of all or part of production
output contract
vsofftake
  • Specialized
6.4

An agreement in which a seller must sell all its products to one buyer who has to buy them

commits the buyer to buy all or part of future production

How Binding

requirements contract
  • Specialized
7.7
offtake
  • Specialized
9.9
letter of intent
  • Formal
8 5.1
memorandum
  • Formal
48 5.4

Surface Forms

offtake singular
offtakes plural

Morphology

offtake = take (opaque) = off + take

The term 'offtake' in the context of contracts is not directly derivable from 'off' + 'take' for learners.

Etymology

Offtake comes from the English parts off and take, where off means 'away' and take means 'to receive'. In business an offtake agreement is when a buyer promises to 'take away' a producer's future output, which is why the word names that kind of contract.