TERMIUM Plus®
The Government of Canada’s terminology and linguistic data bank.
CONTRACT WASH OUT [1 record]
Record 1 - internal organization data 2009-07-06
Record 1, English
Record 1, Subject field(s)
- Commercial Law
- Law of Contracts (common law)
Record 1, Main entry term, English
- contract wash out
1, record 1, English, contract%20wash%20out
correct
Record 1, Abbreviations, English
Record 1, Synonyms, English
- wash out 2, record 1, English, wash%20out
correct
- washout 3, record 1, English, washout
correct
Record 1, Textual support, English
Record number: 1, Textual support number: 1 CONT
A washout is not a cancellation of a contract. It is when one party seeks to terminate the contract before its expiry and pays out the difference between the original contract price and the market price at the time of the washout. It is not a default; it is an agreement between the two parties not to take a contract through to full execution, and to negotiate a payment to compensate the other party for any costs for early termination of the contract. Either the buyer or seller can seek a washout - if no agreement is reached on the washout price, the contract stands. 3, record 1, English, - contract%20wash%20out
Record number: 1, Textual support number: 2 CONT
Wash outs are common to all commodity trading. Common reasons for wash outs are a seller's inability to cover, to supply the goods under contract for reasons which cannot be considered "force majeure". 2, record 1, English, - contract%20wash%20out
Record 1, French
Record 1, Domaine(s)
- Droit commercial
- Droit des contrats (common law)
Record 1, Main entry term, French
- liquidation de contrat
1, record 1, French, liquidation%20de%20contrat
proposal
Record 1, Abbreviations, French
Record 1, Synonyms, French
Record 1, Textual support, French
Record number: 1, Textual support number: 1 DEF
Opération de règlement en espèces prévue aux termes d'un contrat à livrer, par laquelle le vendeur paie à l'acheteur la différence entre le prix stipulé au contrat et le cours du marché de la marchandise à livrer à la date de liquidation. 1, record 1, French, - liquidation%20de%20contrat
Record 1, Spanish
Record 1, Textual support, Spanish
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