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Hi chris
Can you explain to me what is own use contract and how does a contract falls into own use. does it have a criteria? what more examples that you can give to classify contract into own use designation?
Do you know any past year question particularly exploring this issue. Because im currently doing gasnature on bpp kit and the answer explanation is somewhat perplexing to me. Bppk book only give one paragraph on executory contract
Hi,
The contract is not settled in cash as per a usual contract. In this scenario the contract is settled on exchanging natural gas, and Gasnature’s business is producing and trading natural gas, hence it is an own use contract.
I’d not get too fraught over it as there is only a small amount of it in the BPP workbook and this question is the only time that I can recall it being examined.
Thanks
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