Contractual Risk Allocation in Offshore Wind Farms Industry - "Knock-for-Knock" as a Model
Article from: OGEL 1 (2023), in Windpower
Abstract
Parties' liability of contractual risk under Offshore Wind Farm contracts seeks to radically abandon common law assumptions regarding risk allocation. Under the provisions of common law, whoever breaches a contract obligation or any particular legal obligation holds liability based on the fault committed, and therefore indemnifies the damaged person. Yet, this is not always the case in the offshore wind farm industry, where risk is allocated to the party who is capable of controlling this risk. In this regard, the parties use the contract to reduce the risk potential or control ...