Notwithstanding Clause Contract Law

The notwithstanding clause is a powerful tool in the world of contract law. It allows parties to a contract to override certain legal protections that would otherwise be available to them. While it can be a useful tool in certain situations, it is important to understand the risks and limitations of using the notwithstanding clause.

First, let`s define what the notwithstanding clause is. It is a provision in a contract that states that certain legal protections will not apply to the parties involved. For example, if two parties enter into a contract with a notwithstanding clause that waives their right to sue each other for breach of contract, then they cannot later rely on the legal protections that would otherwise be available to them if one of them breaches the contract.

The notwithstanding clause can be a useful tool in certain situations. For example, it may be necessary in complex commercial contracts where the parties want to limit their legal exposure. It can also be used in employment contracts where the employee agrees to waive certain legal protections in exchange for other benefits, such as a higher salary.

However, there are risks and limitations to using the notwithstanding clause. One major risk is that it may not be enforceable. Even if the parties agree to waive certain legal protections, a court may still decide to apply them if it determines that the notwithstanding clause is contrary to public policy or otherwise unfair.

Another limitation is that the notwithstanding clause cannot be used to waive certain fundamental rights. For example, it cannot be used to waive the right to a fair trial or the right to be free from discrimination. In addition, it cannot be used to override mandatory legislation, such as employment standards or health and safety laws.

In conclusion, the notwithstanding clause is a powerful tool in the world of contract law, but it should be used with caution. Parties should carefully consider the risks and limitations of using the clause before including it in a contract. It is also important to consult with a lawyer experienced in contract law to ensure that the clause is properly drafted and enforceable.

19 Aug 2022

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