Hell or high water clause

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A hell or high water clause is a clause in a contract, usually a lease, which provides that the payments must continue irrespective of any difficulties which the paying party may encounter (usually in relation to the operation of the leased asset). The clause usually forms part of a parent company guarantee.

[edit] Sample clause

"The obligations of Party X under Clause 10 (Payments) are absolute and paramount obligations to procure performance, and Party X shall indemnify Party Y for any loss or damage arising from its failure to procure performance of those obligations irrespective of whether the primary contractual liability of Party X or any other person in relation to Clause 10 may be limited by Clause 16 (Force majeure) or by the common law doctrines of frustration or impossibility."

[edit] See also

• Hardship clause
• Force majeure