Market distortion Sample Clauses

A Market Distortion clause is designed to address situations where abnormal market conditions affect the normal functioning of financial markets or the pricing of financial instruments. Typically, this clause outlines what constitutes a market distortion, such as government intervention, suspension of trading, or extreme price volatility, and specifies the actions parties may take if such events occur, like suspending obligations or adjusting terms. Its core practical function is to protect parties from unforeseen market disruptions that could unfairly impact contractual obligations, ensuring fairness and stability in the execution of the agreement.