Hardship clause
Hardship clause

The following Commercial precedent provides comprehensive and up to date legal information covering:

  • Hardship clause

Hardship

  1. means[, subject to clause [1.6 OR 1.7],] a [fundamental OR material] change in the balance of a party’s benefits and obligations under this Agreement caused by a[ legal, technical, political, economic or financial] event (or events) that occurs[ or the impact of which becomes known to the affected party] during the term of this Agreement which:

    1. (a)

      is not a [insert (eg ‘Force Majeure Event’ or ‘circumstance to which clauses [X] or [Y] relate’)];

    2. (b)

      [except in the case of the circumstances referred to in [insert reference eg to clause 1.6 or 1.7 if appropriate], ]could not reasonably have been anticipated, mitigated against or avoided by the Disadvantaged Party at the time of execution of this Agreement;

    3. (c)

      is beyond the control of [the Disadvantaged Party]; and

    4. (d)

      the risk of which is not otherwise assumed[ (expressly or by implication)] by [the other party OR the Disadvantaged Party] under this Agreement.

Disadvantaged Party

  1. means, in relation to a Hardship, the party (or parties) to this Agreement that suffered (or reasonably anticipates suffering) a detrimental change to its benefits a

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