Due or Payable? Court of Appeal Clarifies ISDA Master Early Termination Provisions

    View Authors March 2016

    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.