liquidation de contrat

CONT: A washout is not a cancellation of a contract. It is when one party seeks to terminate the contract before its expiry and pays out the difference between the original contract price and the market price at the time of the washout. It is not a default; it is an agreement between the two parties not to take a contract through to full execution, and to negotiate a payment to compensate the other party for any costs for early termination of the contract. Either the buyer or seller can seek a washout - if no agreement is reached on the washout price, the contract stands.
CONT: Wash outs are common to all commodity trading. Common reasons for wash outs are a seller's inability to cover, to supply the goods under contract for reasons which cannot be considered ""force majeure"".