Meet-or-Release Clause

Summary

This clause known as a "meet-or-release" competition clause or competitive price clause, serves to release a buyer from its purchase obligations or allow it to terminate the agreement if the buyer can secure better pricing from a third party for the same or substantially similar goods under similar terms and conditions, which pricing the seller fails to meet. This clause includes practical guidance, drafting notes and alternate clauses. A meet or release clause benefits the buyer in a sale transaction. Such clauses generally provide the supplier with the option to match the more favourable pricing terms on which the buyer is able to purchase the subject goods from another source. The buyer's rights in the event the supplier elects not to meet the lower pricing can vary and will usually relate to the nature of the subject sales agreement. For example, if the agreement only calls for the supply of a single product, the buyer should have the right to terminate the agreement in its ...