Also, point 7 of the EFET Treaty does not provide for compensation obligations in the event of force majeure .8. EFET has commissioned legal opinions on the applicability of general power and gas agreements for many European countries, which are available to EFET members. The applicability of the general terms of sale of EFET in each country may vary according to local laws and customs. A list of countries and the cost of obtaining such legal advice are available on the EFET website (www.efet.org). Usually, buyers and sellers who use the EFET agreement develop their own « home view » on the terms of their election paper, based on their market position. One of the most important issues to consider in developing such a position and in negotiations with counterparties is the credit risk and credit support that the parties are willing to accept or demand. Parties who do not have a credit or guarantee of a parent company are generally required to use commercial banks. The EFET management contract grants a non-failing party the right, before the delay of a contractual payment or other fault on the part of the other party (the defaulting party), to immediately suspend other electricity deliveries and to release them from its other delivery obligations until it receives all payments due or guarantee of guarantee of those payments. 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. » Each contract includes the economic conditions of each trade (for example. B start and end date, delivery plans, contract capacity and quantity, price and total cost).
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; These standardized management contracts for the supply and receipt of electricity or natural gas offer a structure similar to that of master`s contracts for OVER-the-counter derivatives published by the International Swaps and Derivatives Association Inc. (ISDA). The agreements and the EFET library associated with it, with additional documentation, are currently the industrial standards applied throughout Europe to the trade in physical energy and gas.