Abstract
Take-or-pay clauses are commonly found in international energy industry contracts, which are often governed by English law. For the second time in the last five years, the English High Court has raised the concern that a take-or-pay clause may – in principle – be an unenforceable penalty. It is disappointing that a view of such potential significance to the global energy industry has once again been delivered in a very short passage contained in a judgment that does not address the industry’s commercial concerns. If take-or-pay clauses may in principle be void as a penalty under English law, this uncertainty is likely to result in unnecessary disputes concerning the enforceability of many such clauses in contracts around the world.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
