Cumulative rights: Overview, definition and example
What are cumulative rights?
Cumulative rights refer to rights that are added together and can be exercised independently or in combination, without limiting or replacing other rights. In contracts, if a party has cumulative rights, they can use multiple legal remedies or options to address a situation, even if they’ve already used one.
Why are cumulative rights important?
Cumulative rights are important because they offer flexibility and a broader range of options for a party seeking to enforce or protect their interests. They allow one party to pursue more than one remedy, ensuring they aren’t limited to a single course of action. This helps parties ensure that they are fully protected in case of disputes or breaches.
Understanding cumulative rights through an example
Imagine a business signs a service contract with a supplier. The contract includes a cumulative rights clause, stating that the company can both seek damages for a breach and request an injunction to stop the supplier from continuing to breach the contract. The business can pursue both options at the same time, rather than being forced to choose one remedy over the other.
An example of a cumulative rights clause
Here’s how a cumulative rights clause might look in a contract:
"The rights and remedies provided in this agreement are cumulative and not exclusive of any other rights or remedies provided by law, equity, or any other provision of this agreement. The exercise of any right or remedy does not preclude the exercise of any other right or remedy."
Conclusion
Cumulative rights give a party the ability to pursue all available remedies without sacrificing one for the other. This provides stronger legal protection and ensures that the party can fully address issues as they arise. Understanding cumulative rights helps businesses safeguard their interests by enabling them to take multiple actions if necessary.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.