If the other party to my contract appoints an administrator, I can get out of that contract, right? Wrong. Most commercial contracts have a termination clause which says something like if one party appoints an administrator or otherwise experiences an event of insolvency, the other party can elect to terminate the contract.
These are known as ipso facto clauses, which is a ye olde latin term reflecting the often automatic triggering of these termination clauses simply by the fact of an insolvency event occurring.
Termination clauses like this are very frequently used when one party enters into a form of external administration.
However, as of July 1, 2018, new laws have introduced significant restrictions on the ability of a party to take a…
Read the full article at: http://www.theherald.com.au/story/5541632/pause-to-check-clause-laws/