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Enron Mail |
Carol I'm having trouble with a few counterparties who, like Enron require an
exclusion of "consequential" losses. Currently under our ETA the exclusion for liability consequential losses/damage only applies to Enron. There is however, a mutual exclusion of limitation of libility in the GTCs and our ISDAs. The major issue I see is to ensure that we are covered for trades that are performed by persons with a password obtained through the counterparty. If we cover that point have we some scope to exclude the indemnity we require from applying to loss of profits? "Creek, Peggy" <pcreek@ue.com.au< on 06/05/2000 04:56:36 PM To: "David Minns (E-mail)" <david.minns@enron.com< cc: Subject: FW: Enron Agreement David Further to the Electronic Trading Agreement, hopefully the following can move us closer to a resolution. To summarise the position: * I agree that we need to replace the deemed ISDA Agreement. Please forward a copy of the Schedule for our review. * UE agrees to acknowledge a letter from Enron stating that the Deemed ISDA Agreement is a master agreement for the purposes of the ETA. * You have stated that counterparties can control their access to Enron products, UE agrees to control the access to EnronOnLine so that at this stage, UE only trades with Enron Australia Finance for Australian power traders. Prior to trading in other products, UE will ensure that a master agreement is in place with the relevant Enron entity. * With respect to Section 4(b) of the ETA, UE cannot agree to include consequential losses. As we have indicated before, we do not believe that this is a risk which should be borne by UE, rather it is a risk that is better dealt with by Enron in their insurances covering business disasters etc. Would it assist if further definition was included for consequential loss to tighten this definition? This would be along the lines of excluding loss of profits etc. Unfortunately this consequential loss clause appears to be holding trading up. If Enron is unable to agree to this amendment we may need to seek an alternative method of trading. For example, is it possible for UE to view the EnronOnline site without any access rights - this may facilitate trading albeit trading via the telephone? Regards Peggy
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