Contractual Remedy-based Provision
A Contractual Remedy-based Provision is a contractual provision that specifies the rights and remedies available to one or more contract parties in the event of a breach or default by another party.
- AKA: Remedy Provision.
- Context:
- It can cover various types of remedies, such as monetary damages, specific performance, injunctive relief, termination, or other forms of relief or compensation.
- It can (often) include:
- It can range from being an Atomic Remedy Provision to being a Complex Remedy Provision.
- It can range from being a Single Element Remedy Provision, a Two Element Remedy Provision, to being a Many Element Remedy Provision.
- It can range from being a General Remedy Provision to being a Contract-Specific Remedy Provision.
- It can range from being an Unconditional Remedy Provision (where the remedies are available automatically upon the occurrence of a breach or default) to being a Conditional Remedy Provision (where the availability of remedies is subject to certain conditions or limitations).
- It can play a crucial role in enforcing contract terms and ensuring that parties adhere to their obligations.
- Example(s):
- a Sales Contract that allows the seller to retain the buyer's deposit as liquidated damages if the buyer fails to complete the purchase.
- a Construction Contract that permits the client to claim compensation for each day the project delivery is delayed beyond the agreed timeline.
- Counter-Example(s):
- Gentlemen’s Agreements, which rely on mutual trust and do not include formal legal remedies.
- Verbal Contracts where remedies are not specified and may be difficult to enforce legally.
- See: Breach of Contract, Specific Performance, Injunction.