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=== Section {{{{{1}}}|8(b)}} === | === Section {{{{{1}}}|8(b)}} === | ||
====Enforcing judgments in far-flung places==== | |||
It is a fact of life that when enforcing a cross-border contract, you may find yourself journeying to foreign climes in a bid to prise assets and payments out of a foreign counterparty. Places like Italy. With the best will in the world, and the firmest written intentions that the agreement be governed by [[English law]] and justiciable exclusively by [[Queen’s Bench Division|her majesty’s courts]]<ref>Yes, yes: ''or'' American law, before [[Judge Wapner]] in the [[People’s Court]]. I ''know''.</ref>, that may still mean engaging with, and obtaining judgments from foreign court systems, if that is where your counterparty and its financial resources are located. Those courts may be obliged to award ''their'' judgments, about ''your'' judgment, in their local currency. That exposes you to FX risk. This clause requires the parties to true up — ''immediately'', should the windfall accrue to the Defaulting Party, only ''promptly'' if it accrues to the innocent one — by reference to a fairly determined “{{{{{1}}}|rate of exchange}}”. | |||
Nerd’s point: This obligation is, strictly speaking, an [[indemnity]] obligation, in the true sense of that concept, in that is a payment that becomes due by reference to an [[externality]] that was not caused by [[breach of contract]] (even though originally it might have arisen out of one). So that’s nice. | |||
===={{{{{1}}}|Rate of exchange}}==== | |||
Abvout that “{{{{{1}}}|rate of exchange}}” — in the {{1992ma}} defined on the spot; in the {{2002ma}} promoted to the big league and featuring in the main {{isdaprov|Definitions}} section. Allow the [[JC]] a pet moan. Goddamn “[[definitions]]”. | |||
{{isda rate of exchange summ|isda92prov}} | {{isda rate of exchange summ|isda92prov}} | ||