Take-if-Offered Contract
A take-if-offered contract obligates the purchaser of the project's output or services to accept delivery and pay for the output and services that the project is able to deliver. The contract does not require the purchaser to pay if the project is unable to deliver the product or perform the services. Therefore the contract protects lenders only if the project is operating at a level that enables it to service its debt. Consequently, if a project's performance might be subject to serious risk of prolonged curtailment or interruption, lenders will normally require that the credit support furnished by the take-if-offered contracts he supplemented with other security arrangements in order to provide adequate protection against events of force majeure. protection against events of force majeure.