Ipso facto reforms – Can I enforce my contractual rights?

27 March 2018
James Roland, Partner, Sydney

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.

Click here to view full size image.

 

 

This update does not constitute legal advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek legal or other professional advice before acting or relying on any of the content.

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