Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. A counterparty to a major contract wishes to keep the contract price low but also reveals that its lender is requiring a right to

4. A counterparty to a major contract wishes to keep the contract price low but also reveals that its lender is requiring a right to unilaterally assignrights and responsibilities under the contract under certain loan repayment conditions. This worries you. Your best approach would be:

  • A.

Use your concession to the assignment provision as leverage to lower other risks. The price term is only one "cost" of the contract, and risk can be lowered through other provisions.

  • B.

Accept the terms. There is nothing you can do about it because lenders often require such an assignment term.

  • C.

Push back on the price term. The only way to compensate for the higher risk that comes with unilateral assignment is with a more favorable contract price term.

  • D.

Leave it to the lawyers. They'll handle it, and your attempts to get involved will only complicate the process.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Exceptions From EU Free Movement Law Derogation Justification And Proportionality

Authors: Panos Koutrakos, Niamh Nic Shuibhne, Phil Syrpis

1st Edition

1509928863, 978-1509928866

More Books

Students also viewed these Law questions

Question

Show that every field is a Euclidean domain.

Answered: 1 week ago

Question

7. How can the models we use have a detrimental effect on others?

Answered: 1 week ago