What Is An Efet Agreement

b) Decrease in negotiations: each party negotiates without delay in good faith to agree with the other of a PPU or a method of determination. In the absence of an agreement before the 5th business day following the settlement date, the following return mechanism applies; During the duration of the EFET agreement, the financial situation of the parties will vary. In the event that one party`s financial situation deteriorates significantly, also known as a material adverse change1, the other party should be able to act quickly and require a performance guarantee.2 This insurance generally has the form of additional credit support. The EFET Masteragrement for electricity exchanges. Designed by EFET, it is a framework contract consisting of terms and conditions relating to delivery terms, payment terms, settlement risks, default risks, compensation compensation and maturity. It applies to any underlying transaction. Also, point 7 of the EFET Treaty does not provide for compensation obligations in the event of force majeure .8. One party is not liable to the other party for the damage suffered by the other party, with the exception of z.B for non-delivery and acceptance remedies, unless the damage is due to gross negligence, deliberate delay or fraud by a party. Conversely, this means that a party is still responsible for non-delivery or acceptance, whether the party acted with light or serious negligence, deliberate delay or fraud. The 15th of the EFET master`s contract deals with the method of calculating variable prices and also establishes return procedures in the event of market disruption. In any event, the general agreement describes very early on the concept of the single agreement on the document (section 1.1), which means that all transactions depend on each other and that a default under a transaction is considered a late payment for all transactions covered by the agreement. The EFET agreement is a master compensation agreement that can cover an unlimited number of trades defined as “individual contracts.”