The FPC clause, also referred to as an area-rate clause, is a provision in a gas contract that enables the contract price to automatically increase if a regulatory agency approves a higher price for gas sold in the specific area. Consequently, if the gas price rises in the area, the contract price will also increase.
An FPC clause, also referred to as an area-rate clause, is a provision in a gas contract that enables the contract price to automatically increase if a regulatory agency permits or mandates a higher price for gas in the specific area. For instance, if a gas company enters into a long-term contract with a customer to sell gas at a fixed price for the next decade, the FPC clause allows the gas company to adjust the contract price if the regulatory agency allows for a higher gas price. This clause is crucial for gas companies as it safeguards them from financial losses in case the production and selling costs of gas rise due to regulatory changes. Additionally, it ensures that gas companies can continue supplying gas to their customers at a reasonable price.
An FPC (Force Majeure, Pandemic, and Catastrophe) clause is a provision in a contract that addresses unforeseen events or circumstances that may prevent one or both parties from fulfilling their obligations under the contract.
The FPC clause typically covers events such as natural disasters, acts of terrorism, war, epidemics, pandemics, government actions, or any other unforeseen event that is beyond the control of the parties involved.
Yes, the COVID-19 pandemic can be considered a valid reason to invoke the FPC clause, as it falls under the category of a pandemic or epidemic.
If the FPC clause is invoked, it may provide relief to the party affected by the unforeseen event. This relief can include the suspension of obligations, extension of deadlines, or even termination of the contract, depending on the specific terms outlined in the clause.
No, the inclusion of an FPC clause in a contract is not automatic. It is a negotiable provision that parties can choose to include or exclude based on their specific needs and circumstances.
Yes, the FPC clause can be modified or customized to suit the specific requirements of the parties involved. It is important to carefully draft and negotiate this clause to ensure it adequately addresses the potential risks and events that may affect the contract.
The retroactive invocation of the FPC clause depends on the language and terms specified in the contract. It is crucial to review the contract and consult with legal counsel to determine the applicability of retroactive invocation.
Yes, if a party is unable to fulfill its contractual obligations due to an event covered by the FPC clause, it can be used as a defence against breach of contract claims. However, the party invoking the clause must demonstrate that the event was beyond their control and that they took reasonable steps to mitigate the impact.
Yes, parties can choose to waive or exclude the FPC clause from their contract if they mutually agree to do so. However, it is advisable to carefully consider the potential risks and consequences before excluding this clause.
The enforceability of the FPC clause in court depends on various factors, including the specific language used, the jurisdiction, and the circumstances surrounding the event. Courts generally interpret and enforce FPC clauses based on the intent of the parties and the language of the contract. It is recommended to seek legal advice to understand the enforceability of the clause in a particular jurisdiction.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/fpc-clause/
- Modern Language Association (MLA):Fpc Clause. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/fpc-clause/.
- Chicago Manual of Style (CMS):Fpc Clause. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/fpc-clause/ (accessed: May 09 2024).
- American Psychological Association (APA):Fpc Clause. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/fpc-clause/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts