Concept, Description, and Features of Call-Out Agreement Model In the Oil and Gas industries from the perspective of the Legal Regime of Iran

Document Type : ISI

Authors

1 Department Private and Islamic Law, Shahid Beheshti University, Tehran. Iran.

2 Department in the field of Oil and Gas Law, Faculty of Law and Political Sciences, Shahid Beheshti University, Tehran. Iran.

Abstract

Legal systems, adapting to commercial necessities have proposed new agreements like the Call-Out Agreement. These agreements provide consumers who require services in indefinite quantities; which are used in the oil industry to provide oil and gas drilling services, containing a fundamental condition that the services under the agreement will be rendered only at the request of the employer, and if the employer does not require these services, the contractor shall not be entitled to any claims. The application of this condition causes the challenge of ambiguity regarding the contract subject and the risk of invalidation of this contract due to its vagueness. The history of research in this field is also limited to general research in the law related to the oil and gas drilling services and this concept has not been investigated independently. Therefore, after distinguishing the concept in question from similar structures with a practical and challenging approach using the library method, we are going to analyze the nature of this concept and then state its characteristics. Based on the interpretation of the inner intention, we believe that the parties in such contracts have formed two levels of agreement. In the first level, the parties, without considering the amount of work, only seek a binding agreement that includes general and particular conditions governing the provision of any services that the employer requires. The second level of the agreement consists of the job orders, over which the conditions of the master agreement govern.

Keywords

Main Subjects

References

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Journal Of Researches Energy Law Studies
Volume 9, Issue 1
August 2023
Pages 143-159

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