IMPAIR Sample Clauses

The "IMPAIR" clause defines the circumstances under which a party's ability to perform its contractual obligations is considered hindered or negatively affected. Typically, this clause outlines specific events or conditions—such as legal restrictions, financial difficulties, or operational disruptions—that may constitute impairment. For example, if a party is unable to deliver goods due to a government embargo, this could trigger the clause. Its core practical function is to clarify what constitutes an impairment, thereby allocating risk and providing a framework for addressing non-performance or delays caused by such events.