Nonexistence of Contractor or Assignee Clause Samples
The "Nonexistence of Contractor or Assignee" clause establishes that, at the time of entering into the agreement, neither the contractor nor any assignee exists as a legal entity or party to the contract. In practice, this clause may be used in situations where a contract is being prepared in anticipation of forming a new company or assigning rights to a future entity, ensuring that obligations or rights are not prematurely attributed. Its core function is to clarify the legal status of parties involved, preventing confusion or disputes about contractual obligations before the relevant entities are formally established.
Nonexistence of Contractor or Assignee. As provided by Article 9.1 and given the case that a reservoir is partially located in an area without a current assignation or contract for Exploration and Extraction, the Contractor shall notify to CNH the geological, geophysical and other types of assessments used to determine the existence of such shared reservoir, including, in such case, the information obtained during the drilling of the ▇▇▇▇▇ by which it was determined that the Discovery exceeded the limits of the Contract Area. The Contractor may continue its activities within the Contract Area, which shall be considered in the Exploration Plans and Development Plans approved by CNH. On their end, the Ministry of Energy will determine the juridical instrument that will be used to carry out with the Petroleum activities in the area without current assignation or contract for Exploration and Extraction. Without prejudice of the above, the Contractor may submit for the consideration of the Ministry of Energy the areas with shared reservoirs as provided by article 29 section I of the Hydrocarbons Law. Such proposal will not be binding, nor will grant preferential rights in relation to the awards for the corresponding contracts for Exploration and Extraction.