process or pay

[avershin]

Hello,
I would really appreciate if anyone could help me with this term.

My sentence runs as follows:

The Spare Capacity Agreement are entered into on the "process or pay" long-term basis.

These Agreements appear all over my text but they never come to the point about what they actually are. I assume that such agreements are made in order to supply some resources on a regular basis, which the client should either use or pay for failure to use, but I am not sure.

Any help will be appreciated.

Alexey

 

[suzi br]

Hello,
I would really appreciate if anyone could help me with this term.

My sentence runs as follows:

The Spare Capacity Agreement are entered into on the "process or pay" long-term basis.

These Agreements appear all over my text but they never come to the point about what they actually are. I assume that such agreements are made in order to supply some resources on a regular basis, which the client should either use or pay for failure to use, but I am not sure.

Any help will be appreciated.

Alexey

This looks like a specialised term and (probably) the only way of working out what it means (if they don't define is specifically in the text) is by adding up the ways it is used in the text. Thus you will arrive at your conclusion as to what it means in this context.