Take Or Pay Clauses In Energy Contracts: Enforceability & Drafting Considerations – Part I
Introduction: Role of Take or Pay Clauses in Energy Sector Contracts In the landscape of energy contracts—notably in gas supply agreements, power purchase agreements, and LNG transactions—”Take or Pay Clauses” (TOPCs) serve a pivotal role. These contractual provisions originated in the United States during the 1960s, when fluctuating seasonal gas demands made revenue predictability difficult […]
Exceptions to the Enforceability of No Oral Modification Clauses
Beyond the Written Word: Exceptions to the Enforceability of No Oral Modification Clauses Introduction A ‘No Oral Modification’ (NOM) clause is a contractual term that mandates any changes or amendments to a contract must be made in writing and signed by the parties. These clauses are standard across a wide spectrum of commercial agreements — […]
Terminating A Commercial Contract: Risk Management Strategies
Introduction The principles pertaining to the termination of the contract that we are about to discuss in the present article are going to apply to all the contracts including the commercial contracts. Commercial contracts between an individual and a corporation or between two corporations are normally an outcome of detailed negotiations, legal advice received by […]