BASKET CLAUSE Meaning and
Definition
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The term "basket clause" is a legal and financial concept often used in contract agreements or international treaties. It refers to a provision that allows a group of items or subjects to be treated and evaluated as a single entity or category, rather than individually. The purpose of incorporating a basket clause in agreements is to streamline the overall assessment, negotiation, or management process, particularly when dealing with numerous components that share similar characteristics or require a collective evaluation.
Under a basket clause, various elements or conditions are grouped together under a common "basket" or category, and their cumulative effects are considered as a whole. This allows for the aggregation of certain thresholds, limits, penalties, or other relevant factors for the collective assessment of the grouped items. The basket clause enables flexibility in addressing various issues related to complex negotiations or agreements by offering a consolidated approach instead of separately handling each component.
For instance, in international trade agreements, a basket clause might be included to determine the overall compliance level of participating countries in meeting specific quotas, tariffs, or environmental regulations. Instead of monitoring each requirement separately, the combined assessments of all components in the basket clause determine whether the thresholds or obligations have been met. This streamlined approach simplifies the evaluation process, enhances transparency, and promotes efficient management of multiple elements within complex agreements.
Common Misspellings for BASKET CLAUSE
- vasket clause
- nasket clause
- hasket clause
- gasket clause
- bzsket clause
- bssket clause
- bwsket clause
- bqsket clause
- baaket clause
- bazket clause
- baxket clause
- badket clause
- baeket clause
- bawket clause
- basjet clause
- basmet clause
- baslet clause
- basoet clause
- basiet clause
- baskwt clause
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