Office - ISDA Provision

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2002 ISDA Master Agreement
A Jolly Contrarian owner’s manual

Section Office in a Nutshell
Use at your own risk, campers!

Office” means any of a party’s branches or offices.
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Section Office in full

Office” means a branch or office of a party, which may be such party’s head or home office.
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Related agreements and comparisons

Related Agreements
Click here for the text of Section Office in the 1992 ISDA
Comparisons
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Resources and navigation

Resources Wikitext | Nutshell wikitext | 1992 ISDA wikitext | 2002 vs 1992 Showdown | 2006 ISDA Definitions | 2008 ISDA | JC’s ISDA code project
Navigation Preamble | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14
Events of Default: 5(a)(i) Failure to Pay or Deliver5(a)(ii) Breach of Agreement5(a)(iii) Credit Support Default5(a)(iv) Misrepresentation5(a)(v) Default Under Specified Transaction5(a)(vi) Cross Default5(a)(vii) Bankruptcy5(a)(viii) Merger without Assumption
Termination Events: 5(b)(i) Illegality5(b)(ii) Force Majeure Event5(b)(iii) Tax Event5(b)(iv) Tax Event Upon Merger5(b)(v) Credit Event Upon Merger5(b)(vi) Additional Termination Event

Index — Click ᐅ to expand:

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Content and comparisons

Regular readers will not be flabbergasted to hear that not even ISDA’s crack drafting squad™ could find something to change in so work-personlike a definition as this. Nor, on the other hand, could they find the courage to delete this needless definition. A lower case “o” for office, denuded of any specific definition, would have done just as well, for who doesn’t know what an office is? — but then this article would have no reason to exist, so for this I suppose we can thank the ’squad.
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Summary

Few things are apt to cause more confusion, fear and loathing for less good reason the legal status, as regards itself, of a company’s various branches.

It is apt to thoroughly confuse muggles which, on a busy day, can be the last thing a legal eagle needs, but on a slow one is fertile grounds for a little sport at the expense of our non-magical friends. You will be surprised how often one is asked to review, approve or even sign a contract, keep-well agreement or service level agreement between a branch of a company and its head office.

The most pragmatic response is just to sign it, wearily, but purists will find this at least aggravating and many will regard it as nothing less than a betrayal of the attorney’s sacred oath. It should not take a first in jurisprudence from Cambridge to comprehend that a fellow cannot enter a legal contract with herself.[1]

  • Branches: If a company is a person — and legally, it is — think of a branch like its arm or leg. A “branch” is a single office or presence of the larger legal entity. It does not have its own legal personality, creditworthiness or independent standing in the commercial world. Like an arm or a leg, it is part of a greater whole. It may just be a single premises of the company — the “Muswell Hill branch of Sainsbury’s”, for example — but in the world of high finance it is usually the whole presence of that legal entity in a given city or country.
  • Affiliates: By contrast, a company’s affiliate is a related but separate legal entity. If a company is a person, its affiliate is its parent, child, or sibling. Parent affiliates are actually even called parents. Children are wholly-owned subsidiaries, ugly stepchildren and bastards are majority-owned subsidiaries and siblings are known as companies “under common ownership”. There is plenty of scope for ugly sisters, black sheep and long-lost cousins from Australia, as you can imagine. Proper affiliates may be consolidated from a financial reporting perspective, but generally (and unless it has specifically agreed to) an affiliate is not responsible for performing the obligations of its any of its affiliates unless it agrees to do so by contract (such as a guarantee).

Office
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See also

Template:M sa 2002 ISDA Office
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References

  1. Or a lease: Rye v Rye.