what is a holdup 
a holdup occurs when a buyer has information on the capital costs of its supplier for making the commodity being purchased the supplier s investment may in part be based on its relationship with the buyer customizing it particularly for the buyer in effect the buyer shares in the supplier s gross return on the investment the supplier may be said to be held up if the buyer makes the decision not to purchase the commodity because it does not like the price after the investment is already made the bottom linetake or pay allows buyers and sellers to share risk in a transaction if the buyer does not buy the goods or does not buy all the goods the contract stipulated the seller receives a penalty fee this also allows the buyer additional flexibility if economic conditions change between the time of the agreement and the date when the purchase is due to be made 