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ARTICLE · 04 MARCH 2021

Nominations – Talking About Take-Or-Pay

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Why? Because take-or-pay is part of the fabric that underpins the commercial basis of numerous energy transactions worldwide – and many of those transactions are governed by English law.

United KingdomCorporate/Commercial Law

Why? Because take-or-pay is part of the fabric that underpins the commercial basis of numerous energy transactions worldwide – and many of those transactions are governed by English law. The judgment also catches the eye because judicial consideration of take-or-pay is as rare as hen's teeth, with most take-or-pay disputes being resolved under the cloak of international arbitration where decisions are confidential and typically known only to the parties involved.

Therefore, how does the Court of Appeal's judgment impact the commercial interpretation and effect of take-or-pay? And what lessons can be learned as to how this mechanism should be structured and operated?

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