The Court of Appeal has given renewed clarity on
how to interpret the early termination provisions of
section 6 of the 1992 ISDA Master Agreement.
It made clear that inadequate and/or late provision of details of
how an early termination amount was calculated will not entitle the
Defaulting Party to avoid liability to pay the amount notified under
section 6(d). It gave guidance on key finance law concepts, and
endorsed the policy of using liquidated damages to bring speed and
certainty to a close-out under an ISDA Master Agreement.
