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Legal Drafting

Legal Drafting

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Published by Ashok
A complete book on Corporate and Commercial Agreements - Drafting, Guidelines, forms and Precedents in India. The text is aimed at assisting lawyers, legal counsel and managers in drafting and structuring Commercial agreements. The forms and precedents used in this text are examples of drafting and should be used as a guide.
A complete book on Corporate and Commercial Agreements - Drafting, Guidelines, forms and Precedents in India. The text is aimed at assisting lawyers, legal counsel and managers in drafting and structuring Commercial agreements. The forms and precedents used in this text are examples of drafting and should be used as a guide.

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Published by: Ashok on Jan 04, 2009
Copyright:Attribution Non-commercial

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04/25/2015

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(a) Termination Payments.—If the FSA is terminated for convenience, or due
to a default, the party terminating for convenience or in default should pay a high
termination payment. If the supplier terminates the agreement for convenience or
the contract is terminated due to a supplier default, the project sponsor will need
to consider how project debt will be paid, and how it will recover some investment
return for the lost opportunity associated with contract operation.

(b) Specific Performance.—If the supplier provides one of the only sources of
input supply or transportation for a project, with other alternatives too costly to
form serious choices, or where the price is crucial to project success, the only
remedy that may be acceptable to the project sponsor is that of specific
performance. Specific performance would require the party in default to perform the
contract as agreed. Local counsel should be consulted to learn whether this is an
available remedy.

(c) Alternative Inputs.—Another remedy is to require that the supplier supply
and transport the needed input to the project from other sources if it is unable to
perform the contract from the original source.

In India, the prospective private investors are also wary of fuel related risks.
The stakeholders namely the transporters, the utilities, the fuel supplier and the
government should evolve an integrated and co-ordinated approach towards fuel
supply. Thus, it is important to make sure that the FSA is for a considerable length
of time and that it ensures supply either from the Indian sector or from the foreign
sectors. Additionally attention must be paid to ensure proper protection for
compensation of non-supply of fuel and the opportunity for future negotiations of
the rate of tariff.

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