Determination of Assumptions Sample Clauses
The Determination of Assumptions clause establishes the specific assumptions that underlie the parties' agreement or a particular aspect of the contract. In practice, this clause identifies key facts, conditions, or expectations—such as market rates, regulatory environments, or resource availability—that both parties accept as true for the purposes of the contract. By clearly stating these assumptions, the clause helps prevent disputes if circumstances change or if the assumptions prove incorrect, ensuring that both parties understand the basis on which their obligations and risks are allocated.
POPULAR SAMPLE Copied 1 times
Determination of Assumptions. 6.3.1 The Technical Bank shall, no later than thirty days prior to a Scheduled Redetermination Date, prepare and deliver to the Borrower the proposed Financial Projection for that Scheduled Redetermination Date together with the Technical Assumptions and the Economic Assumptions used in the preparation thereof. The Technical Assumptions shall be determined by the Technical Bank acting reasonably on the basis of its good faith opinion and by reference to the Lenders’ Technical Report prepared specifically for the proposed Financial Projection and prices in the Economic Assumptions will reflect any Hedge Agreements entered into by the Borrower in respect of the Borrowing Base Assets. The Technical Bank shall at the same time deliver to the Borrower a copy of the relevant Lenders’ Technical Report used for the purposes of the proposed Financial Projection.
6.3.2 If any of the Technical Assumptions used in the preparation of the proposed Financial Projection is disputed by the Borrower and, following good faith discussions for a period of ten days, the Technical Bank and the Borrower are unable to resolve the dispute and agree on the relevant Technical Assumption, the Technical Bank shall prepare the Financial Projection on the basis of the Technical Assumptions drawn from the relevant Lenders’ Technical Report, as modified to take account of any changes requested by the Borrower and agreed by the Technical Bank (acting reasonably, taking into account any independent reserve reports or oil price forecasts provided by the Borrower, and providing reasonable justification for its determination).
6.3.3 The Economic Assumptions shall be determined by the Agent acting reasonably on the basis of its good faith opinion. If any of the Economic Assumptions used in the preparation of the proposed Financial Projection are disputed by the Borrower and, following good faith discussions for a period of ten days, the Agent and the Borrower are unable to resolve the dispute and agree on the relevant Economic Assumption, the Agent shall prepare the Financial Projection on the basis of the Economic Assumptions determined by it on a fair and reasonable basis, as modified to take account of any changes requested by the Borrower and agreed by the Agent (acting reasonably, taking into account any independent reserve reports or oil price forecasts provided by the Borrower, and providing reasonable justification for its determination).
6.3.4 In the case of any Financial Projection to ...