Contract_Risk_and_Symmetry_Issues_1_

Contract_Risk_and_Symmetry_Issues_1_ - Counter party may...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Contract Risk and Symmetry Issues Insured? Physical liability? Environmental Business Interruption? Volume Committed volumes unequal to Supply volumes in quantity or time Price Floating Purchase Price vs Fixed Sales Price. Input Prices and Output Prices not well correlated or in different currencies Transportation Committed sales and/or purchase volumes with interruptible transportation agreements Construction Delays, Cost overruns, failure to complete. Creditworthiness
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Counter party may have weak credit which may cause contract terms to be negated in bankruptcy Convertibility & Repatriation Can foreign currency be converted to dollars and can it be repatriated to US? Technological Risk Is technology proven? On this scale? Liquidity Risk Can we lose a lot of money in any given year even though profitable overall? Political Risk Strength of contract law? International arbitration? Insurable Risk?...
View Full Document

This note was uploaded on 03/11/2010 for the course CEVE 322 taught by Professor Segner during the Spring '10 term at Rice.

Ask a homework question - tutors are online