The Affected Party Clause Samples
The "Affected Party" clause defines which party to a contract is impacted by a specific event, typically in the context of force majeure or other disruptive circumstances. In practice, this clause identifies the party that is unable to fulfill its contractual obligations due to events beyond its control, such as natural disasters, government actions, or other unforeseen incidents. By clearly designating the affected party, the clause helps allocate responsibility and provides a framework for how the parties should respond, ensuring clarity and reducing disputes when unexpected events occur.
The Affected Party. (i) applies for or consents to the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of itself or a substantial part of its property;
(ii) makes a general assignment for the benefit of its creditors;
(iii) files a petition or otherwise commences, authorizes, or acquiesces in the commencement of a proceeding or cause under any bankruptcy or similar law for the protection of creditors, or has such petition filed against it and such proceeding remains undismissed for thirty (30) days;
(iv) otherwise becomes bankrupt or insolvent (however evidenced); or
(v) admits in writing its inability to pay its debts as they fall due.
The Affected Party. (a) will forthwith notify the other party of the nature, extent, effect and likely duration of the circumstances constituting the Force Majeure Event. As soon as possible following such notification, the parties will consult with each other in good faith and use all reasonable endeavours to agree appropriate terms to:
(i) mitigate the effect of the Force Majeure Event; and
(ii) facilitate the continued performance of the Agreement;
(b) will use all reasonable endeavours, in accordance with good industry practice to minimise the effect of the Force Majeure Event on the performance of its obligations under the Agreement, including in the case of:
(i) the Delivery Partner, compliance with any mitigation measures proposed in relation to the relevant Force Majeure Event in the Risk Register or Issues Register; and
(ii) either party, the making of any alternative arrangements for resuming the performance of the relevant party‟s obligations, which may be practicable without incurring material additional expense; and
(c) will forthwith after the cessation of the Force Majeure Event:
(i) notify the other party thereof; and
(ii) resume full performance of its obligations under the Agreement.
The Affected Party shall give notice to the other Party of (i) the cessation of the relevant event of Force Majeure; and (ii) the cessation of the effects of such event of Force Majeure on the performance of its rights or obligations under this Agreement, as soon as practicable after becoming aware of each of these cessations.
The Affected Party. (a) will forthwith notify the other parties of the nature, extent, effect and likely duration of the circumstances constituting the Force Majeure Event. As soon as possible following such notification, the parties will consult with each other in good faith and use all reasonable endeavours to agree appropriate terms to:
(i) mitigate the effect of the Force Majeure Event; and
(ii) facilitate the continued performance of the MOU;
(b) will use all reasonable endeavours, in accordance with good industry practice to minimise the effect of the Force Majeure Event on the performance of its obligations under the MOU, including the making of any alternative arrangements for resuming the performance of the relevant party’s obligations, which may be practicable without incurring material additional expense; and
(c) will forthwith after the cessation of the Force Majeure Event:
(i) notify the other party thereof; and
(ii) resume full performance of its obligations under the MOU.
The Affected Party makes an assignment or any general arrangements for the benefit of creditors;
The Affected Party. (i) makes an assignment or any general arrangements for the benefit of creditors;
(ii) files a petition or otherwise commences, authorizes, or acquiesces in the commencement of a proceeding or cause under any bankruptcy or similar law for the protection of creditors, or has such petition filed against it and such proceeding remains undismissed for thirty (30) days;
(iii) otherwise becomes bankrupt or insolvent (however evidenced); or
(iv) is unable to pay its debts as they fall due.