Ipso facto bepalingen

Ipso facto provisions, derived from the Latin phrase 'ipso facto' (by the very fact itself), are contractual terms that automatically give rise to legal consequences upon the occurrence of a specified event. In Dutch legal practice, such provisions appear primarily in commercial contracts and typically address circumstances of insolvency or bankruptcy.

Under Dutch bankruptcy law, ipso facto provisions are in principle void pursuant to Article 3:40 of the Dutch Civil Code and the Bankruptcy Act, on the ground that they may prejudice the estate and obstruct the continuation of the business. This principle is reinforced by the implementation of the EU Restructuring Directive, which imposes restrictions on such clauses.

In practice, ipso facto provisions are frequently included in supply and financing agreements, although courts apply strict scrutiny to their validity in order to prevent abuse.