The essence of Ofteik contracts?

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    Question

    The essence of Ofteik contracts?

    Answer

    The essence of such an agreement is that the customer finances the production of the required goods, and the goods, accordingly, are produced exclusively for this order. At the same time, the customer is obliged to pay for the product, even if he no longer needs it.

    Offtake contracts were developed as part of the development of the domestic manufacturing industry, the creation of new jobs. Offtake contracts make it possible to increase the competitiveness of the economy and import substitution so that the country's budget works for the domestic market, and not for foreign countries.

    In other words, these are long-term purchase agreements, during which the manufacturer will have time to develop products, produce and deliver.

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