Template:M summ 2002 ISDA 5(c)

In which the JC thinks he might have found a bona fide use for the awful legalism “and/or”. Crikey.

What to do if the same thing counts as an Illegality and/or a Force Majeure Event and an Event of Default and/or a Termination Event.

Why do we need this? Remember an Event of Default is an apocalyptic disaster scenario which blows your whole agreement up with extreme prejudice; a Termination Event is just “one of those things” which justifies termination, but may relate only to a single transaction: it isn’t something one needs necessarily to hang one’s head about.

A Force Majeure Event is something that is so beyond one’s control or expectation that it shouldn’t count as an Event of Default or even a Termination Event at all.

An Event of Default has more severe consequences for the counterparty. Well, the whole point about force majeure is that it is meant to give you an excuse not to perform your agreement. An Illegality is only a Termination Event (one can’t be criticised if they go and change the law on you, can one?).