Commercial terms & deal structure · Working
Minimum annual commitment
Also called: MAC
ELI5
The minimum annual spend or volume a customer agrees to purchase.
Used in conversation
“Do not describe minimum annual commitment as agreed until the operative document says so.”
Pitch context
You will see “Minimum annual commitment” in go-to-market plans, sales forecasts, account reviews and commercial proposals when the discussion reaches commercial terms & deal structure.
Why it matters: In commercial terms & deal structure, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Connected terms
- Marginal abatement costThe search label “MAC” can route to both entries.
- Material adverse changeThe search label “MAC” can route to both entries.
Sources & evidence · 3
Direct term-level sources and supporting source families.
- OECD — G20/OECD Principles of Corporate Governance 2023Direct source · institutional · checked 2026-08-16
- U.S. Small Business Administration — Write your business planSupporting source family · primary · checked 2026-08-16
- IFRS Foundation — IFRS GlossarySupporting source family · primary · checked 2026-08-16