Mitigation and Process Clause Samples
The Mitigation and Process clause outlines the steps parties must take to minimize or address potential losses, damages, or risks arising during the course of an agreement. Typically, this clause requires each party to act promptly and reasonably to reduce the impact of any adverse events, such as notifying the other party of an issue and cooperating in finding a solution. Its core practical function is to ensure that both parties actively work to limit harm and resolve problems efficiently, thereby reducing overall liability and preventing avoidable escalation of issues.
Mitigation and Process. (a) Where a Party is (or claims to be) affected by an event of Force Majeure, such Party shall take commercially reasonable steps to, and to continue to, mitigate the consequences of such event of Force Majeure upon the performance of its obligations under this Project Agreement, shall resume performance of its obligations affected by the event of Force Majeure as soon as practicable, and shall use commercially reasonable efforts to, and to continue to, remedy its failure to perform. Such efforts of mitigation and remediation shall include efforts to minimize any negative impact of the event of Force Majeure on the Contract Time and/or the Construction Schedule.
(b) To the extent that the Party claiming relief does not comply with its obligations under this Section 24.3, such failure shall be taken into account in determining such Party’s entitlement to relief pursuant to this Article 24.
(c) The Party claiming relief shall give written notice to the other Party within 5 Business Days of such Party becoming aware of the relevant event of Force Majeure. Such initial notice shall give sufficient details to identify the particular event claimed to be an event of Force Majeure.
(d) A subsequent written notice shall be given by the Party claiming relief to the other Party within a further 5 Business Days of the initial notice, which notice shall contain such relevant information relating to the failure to perform (or delay in performing) as is available, including the effect of the event of Force Majeure on the ability of the Party to perform, the action being taken in accordance with Section 24.3(a), the date of the occurrence of the event of Force Majeure, and an estimate of the period of time required to overcome the event of Force Majeure and its effects.
(e) The Party claiming relief shall notify the other as soon as the consequences of the event of Force Majeure have ceased and of when performance of its affected obligations can be resumed.
(f) If, following the issue of any notice referred to in Section 24.3(d), the Party claiming relief receives or becomes aware of any further information relating to the event of Force Majeure and/or any failure to perform, such Party shall submit such further information to the other Party as soon as reasonably possible.
Mitigation and Process. 172 44.4 Insured Exposure ........................................................................................................ 172 44.5 Modifications .............................................................................................................. 173