Offtake contracts (particularly single-offtaker contracts) will typically contain provisions relating to the following:
- Price and price escalation
- Minimum supply obligations and consequences of failing to meet them
- Take or pay provisions (how much the offtaker must pay each period, irrespective of whether he takes the output)
- Pass through provisions for events outside of the project’s control, such as force majeure and change in law
- Consequences of failing to meet obligations for each counterparty, which might include a right for the project to put the project’s assets to the offtaker for certain unremedied offtaker breaches of contract
- Details relating to guarantees by offtaker parents (often in a separate document)