Volume 26, Issue 1 (2022)
CLR 2022, 26(1): 123-147 |
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Kasnavi S, Bagheri M. The Legal and Credit Status of the Project Products’ Sale Contract in the Chain of Project-Oriented Financing Contracts: the Role of Sale’s Contract Terms in Project Bankability. CLR 2022; 26 (1) :123-147
URL: http://clr.modares.ac.ir/article-20-52046-en.html
URL: http://clr.modares.ac.ir/article-20-52046-en.html
1- Ph.D. in Oil and Gas law, Faculty of Law and Political Science, University of Tehran, Tehran, Iran , shadikasnavi@gmail.com
2- Associate Professor of Department of Private Law, Faculty of Law and Political Science, University of Tehran, Tehran, Iran.
2- Associate Professor of Department of Private Law, Faculty of Law and Political Science, University of Tehran, Tehran, Iran.
Abstract: (593 Views)
Project-oriented financing as a method of attracting capital - unlike other methods of financing - does not rely on the credit and guarantee of the investor and requires the bankability of the project, and this bankability itself is affected by the performance of the project and the production of liquidity of the project. In this regard, the sale’s contract as a legal and credit instrument, with a prominent role in generating project liquidity, is considered a key component of the project's bankability, therefore, it is necessary for the lender to be sure of the sale of the product according to the expected conditions. But the implementation of the sale’s contract is also associated with risks, and bankability is realized only on the condition of optimal management of these risks and establishing special contractual conditions for allocating them to actors who have a higher ability to manage risk. In this manner, the design method of the sales contract plays a direct role in attracting capital from the financier for the implementation of industrial projects.
Article Type: Original Research |
Subject:
Comparative Law
Received: 2021/04/27 | Accepted: 2022/08/9 | Published: 2022/10/27
Received: 2021/04/27 | Accepted: 2022/08/9 | Published: 2022/10/27
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