The following Energy practice note produced in partnership with Phillip Ashley, Judith Aldersey-Williams, David Rutherford, and Leontine Mathew of CMS Cameron McKenna Nabarro Olswang LLP provides comprehensive and up to date legal information covering:
This Practice Note considers the English Court’s attitude to take-or-pay clauses and provides a thorough consideration the rule on penalties in relation to take-or-pay clauses.
For an introduction to introduction to take-or-pay clauses in the energy sector and the regulatory and competition law issues regularly encountered, see Practice Note: An introduction to take-or-pay clauses in energy contracts.
For more information on drafting take-or-pay clauses and the common features encountered, see Practice Note: Drafting take-or-pay clauses in energy contracts.
English Courts have generally recognised and upheld take-or-pay provisions in commercial agreements.
In Port of Tilbury (London) Ltd v Stora Enso Transport & Distribution Ltd, the defendant had an ongoing need to import, handle, store and distribute its paper in England. It entered into a long-term contract with the claimant, the Port of Tilbury (the ‘Port’), under which the Port agreed to construct facilities for the handling of the defendant’s paper at Tilbury and provide a number of services such as the unloading of paper shipped to the port and the loading of paper orders for despatch from the facilities. In return, the defendant agreed to supply a minimum quantity of paper to the Port each year, for a term of fifteen years, and pay the Port for handling that quantity of paper. Alternatively, the defendant agreed to supply less paper but still pay for
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
This Practice Note considers the meaning and use of conditions precedent in commercial arrangements. It also considers typical conditions precedent and drafting issues.What are conditions precedent?A condition precedent in a commercial contract details an event which must take place before:•a
Express and implied contractual terms distinguishedContractual terms may be either express or implied:•express terms—are terms which are actually recorded in a written contract or openly expressed in an oral contract at the time the contract is made (or there may be a combination of written and oral
The right to notice means a right for the employee to remain in employment for the period of notice, not simply to be paid for it. An employer will therefore often include in the contract an express right to make a payment in lieu of notice ('PILON') as an alternative to giving notice, to ensure
Disposal and devolutionThe equity of redemption arises as soon as the mortgage is made. It is an interest in the land which the mortgagor can:•transfer, lease or mortgage inter vivos, or•by will (it passes on intestacy)No cloggingIt is a fundamental principle of a mortgage that there must be no clog
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.