Long-form confirmation in derivatives

It is highly unlikely that the signed “long form” trade confirmation may be enforced in Uzbekistan as a normal contract. Rather, it may be regarded as a preliminary contract obliging the parties to enter into a contract in the future (a “principal contract”).

In accordance with Uzbekistan law [1], the legal nature of a preliminary contract differs considerably from that of a normal commercial contract. The preliminary contract does not create rights and obligations of the parties in relation to a certain transaction as the principal contract does. The only purpose of the preliminary contract is to create a legal basis to oblige the parties to enter into the principal contract in the future. Should a party refuses unilaterally from entering into the principal contract after having signed the preliminary contract, the other party will be entitled to sue this p...

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Long-form confirmation in derivatives

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