This clause offers you a lower price if you buy a certain quantity—for example, 10% off if you order 1,000 units or more. It incentivizes bulk buying and locks in savings, but it also creates a risk: if you can't reach the threshold, you pay full price. The legal principle here is that both parties must perform their obligations, so if you commit to a volume you can't achieve, you may still owe the higher price. For example, you might promise to buy 5,000 widgets to get a discount, then only need 3,000.
Negotiate a tiered discount structure instead of an all-or-nothing threshold—this way you get some savings even if you fall short. Build in a clause that lets you adjust your volume commitment quarterly based on actual demand, or ask for a "most favored customer" clause that gives you the discount if you reach 80% of the target. Always calculate whether the discount is worth the risk of overpaying if you miss the volume. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause offers you a lower price if you buy a certain quantity—for example, 10% off if you order 1,000 units or more.
Why should I care about this clause?
It incentivizes bulk buying and locks in savings, but it also creates a risk: if you can't reach the threshold, you pay full price.
What are my options?
The legal principle here is that both parties must perform their obligations, so if you commit to a volume you can't achieve, you may still owe the higher price.
How does this affect small businesses?
For example, you might promise to buy 5,000 widgets to get a discount, then only need 3,000.