CONTINGENCY AND GOOD FAITH CLAUSE Clause Samples
The Contingency and Good Faith Clause establishes that certain obligations or actions under the contract are dependent on the occurrence of specified events or conditions, and requires all parties to act honestly and fairly in pursuing those conditions. In practice, this means that if a contract is contingent upon securing financing or regulatory approval, the parties must make genuine efforts to fulfill these requirements and cannot deliberately hinder the process. This clause ensures that contractual commitments are only enforceable when agreed-upon contingencies are met, while also promoting trust and cooperation by mandating good faith behavior, thereby reducing the risk of opportunistic conduct or disputes over unmet conditions.
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CONTINGENCY AND GOOD FAITH CLAUSE. This Contract is contingent on Seller getting the “Mill” operational. In the event Seller is unable to get the Mill operational, due to lack of financing or for any other reason, Seller shall have no liability to Buyer under this Agreement except to repay the advance payment to Buyer. Also, ▇▇▇▇▇ and ▇▇▇▇▇▇ recognize that all possible contingencies cannot be covered by this contract and therefore in the case of any unforeseen circumstances affecting this contract, Seller and ▇▇▇▇▇ will make every attempt to mutually agree to a good faith solution pursuant to the intent of the original contract.