Ipso facto reforms – Can I enforce my contractual rights?

Ipso facto clauses are contractual provisions that allow a party to terminate or modify a contract on the occurrence of a specified event.

The Commonwealth Government has introduced reforms which will limit the rights of a party to enforce ipso facto clauses in certain insolvency scenarios. The reforms come into effect on 1 July 2018.

This flowchart is designed to assist in determining whether these reforms will impact upon the exercise of your contractual rights.

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