Legal Nature and Validity of Take-or-Pay Clause in Longterm Gas Sale Agreements: A Comparative Study
Take-or-Pay clause (T-o-P), as an essential element of long-term off-takeand supply contracts in energy sector, particularly in Gas SalesAgreements.The philosophy of T-o-P clause is based on the importance ofthe fact that the seller will receive a level of revenue guaranteed under theagreement that...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2016-11-01
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| Series: | Faṣlnāmah-i Pizhūhish-i Huqūq-i Khuṣūṣī |
| Online Access: | https://jplr.atu.ac.ir/article_6742_5cc67945d76531d2ff0dea56743b71c6.pdf |
| _version_ | 1797375778108735488 |
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| author | Mohammad Mahdi Hajian Mitra Moosavi |
| author_facet | Mohammad Mahdi Hajian Mitra Moosavi |
| author_sort | Mohammad Mahdi Hajian |
| collection | DOAJ |
| description | Take-or-Pay clause (T-o-P), as an essential element of long-term off-takeand supply contracts in energy sector, particularly in Gas SalesAgreements.The philosophy of T-o-P clause is based on the importance ofthe fact that the seller will receive a level of revenue guaranteed under theagreement that covers massive financial commitments and debts arising fromthe upstream project. Although T-o-P clause is frequently considered inGSAs, the validity and applicability of this condition is subject to controversyamong different legal systems. Some lawyers have treated this provision as apenalty clause which is invalid and unenforceable. However, others regard itas a valid and enforceable liquidated damage clause.This paper first focuses on uncertainties and ambiguities regarding the legalstatus of take-or-pay provision, particularly in English legal system. Then, itdiscusses the issue by considering the fundamentals of Islamic contract rulesand jurisprudence, particularly Iranian legal system reflected in the IranianCivil Code |
| first_indexed | 2024-03-08T19:30:05Z |
| format | Article |
| id | doaj.art-0e21684754a1444fb8563ca35f0a28d1 |
| institution | Directory Open Access Journal |
| issn | 2345-3583 2476-6232 |
| language | fas |
| last_indexed | 2024-03-08T19:30:05Z |
| publishDate | 2016-11-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | Faṣlnāmah-i Pizhūhish-i Huqūq-i Khuṣūṣī |
| spelling | doaj.art-0e21684754a1444fb8563ca35f0a28d12023-12-26T07:47:40ZfasAllameh Tabataba'i University PressFaṣlnāmah-i Pizhūhish-i Huqūq-i Khuṣūṣī2345-35832476-62322016-11-015168110710.22054/jplr.2016.67426742Legal Nature and Validity of Take-or-Pay Clause in Longterm Gas Sale Agreements: A Comparative StudyMohammad Mahdi Hajian0Mitra Moosavi1استادیار حقوق خصوصی و اقتصادی دانشگاه علامه طباطبائی،کارشناسی ارشد حقوق تجارت بینالملل دانشگاه علامه طباطبائیTake-or-Pay clause (T-o-P), as an essential element of long-term off-takeand supply contracts in energy sector, particularly in Gas SalesAgreements.The philosophy of T-o-P clause is based on the importance ofthe fact that the seller will receive a level of revenue guaranteed under theagreement that covers massive financial commitments and debts arising fromthe upstream project. Although T-o-P clause is frequently considered inGSAs, the validity and applicability of this condition is subject to controversyamong different legal systems. Some lawyers have treated this provision as apenalty clause which is invalid and unenforceable. However, others regard itas a valid and enforceable liquidated damage clause.This paper first focuses on uncertainties and ambiguities regarding the legalstatus of take-or-pay provision, particularly in English legal system. Then, itdiscusses the issue by considering the fundamentals of Islamic contract rulesand jurisprudence, particularly Iranian legal system reflected in the IranianCivil Codehttps://jplr.atu.ac.ir/article_6742_5cc67945d76531d2ff0dea56743b71c6.pdf |
| spellingShingle | Mohammad Mahdi Hajian Mitra Moosavi Legal Nature and Validity of Take-or-Pay Clause in Longterm Gas Sale Agreements: A Comparative Study Faṣlnāmah-i Pizhūhish-i Huqūq-i Khuṣūṣī |
| title | Legal Nature and Validity of Take-or-Pay Clause in Longterm
Gas Sale Agreements: A Comparative Study |
| title_full | Legal Nature and Validity of Take-or-Pay Clause in Longterm
Gas Sale Agreements: A Comparative Study |
| title_fullStr | Legal Nature and Validity of Take-or-Pay Clause in Longterm
Gas Sale Agreements: A Comparative Study |
| title_full_unstemmed | Legal Nature and Validity of Take-or-Pay Clause in Longterm
Gas Sale Agreements: A Comparative Study |
| title_short | Legal Nature and Validity of Take-or-Pay Clause in Longterm
Gas Sale Agreements: A Comparative Study |
| title_sort | legal nature and validity of take or pay clause in longterm gas sale agreements a comparative study |
| url | https://jplr.atu.ac.ir/article_6742_5cc67945d76531d2ff0dea56743b71c6.pdf |
| work_keys_str_mv | AT mohammadmahdihajian legalnatureandvalidityoftakeorpayclauseinlongtermgassaleagreementsacomparativestudy AT mitramoosavi legalnatureandvalidityoftakeorpayclauseinlongtermgassaleagreementsacomparativestudy |