Exception: Overview, definition, and example
What is an exception?
An exception is a provision or circumstance in which a general rule, law, or agreement does not apply. Exceptions are used to outline specific situations where an otherwise applicable rule, condition, or term can be disregarded or altered. In legal agreements, an exception is often included to provide flexibility or to account for specific circumstances that do not fall within the general scope of the agreement.
Why are exceptions important?
Exceptions are important because they provide clarity and flexibility in legal and business agreements. While rules and terms are designed to cover a wide range of situations, exceptions acknowledge that not all situations fit neatly into the standard framework. By including exceptions, parties can ensure that specific, unique, or unforeseen circumstances are addressed appropriately. This prevents overly rigid contracts that may lead to unfair outcomes in certain cases and ensures that the agreement is adaptable to real-world situations.
Understanding exception through an example
Imagine a company signs a contract to provide services over a one-year period. The general terms of the contract specify that payment is due at the end of each month. However, the contract includes an exception stating that no payment is required for the first month of service, giving the company time to complete initial setup work. This exception allows the company to deviate from the general rule and ensures that the terms are realistic for the situation.
In another example, a retailer agrees to supply goods to a buyer under a contract that states the goods will be delivered within 30 days of the order date. However, the contract includes an exception for instances where delivery is delayed due to “force majeure” events, such as natural disasters or transportation strikes. In these cases, the usual delivery timeline is extended, and the exception ensures that the contract remains fair even when unforeseen circumstances occur.
An example of exception clause
Here’s how an exception clause might appear in an agreement:
“The Supplier shall deliver the goods to the Buyer within 30 days of the order date, except in the case of delays caused by circumstances beyond the Supplier’s control, including but not limited to acts of God, strikes, or transportation disruptions. In such cases, the Supplier will notify the Buyer of the delay and provide a revised delivery date.”
Conclusion
An exception is a crucial component in legal and business agreements, allowing for flexibility and addressing unique situations that the standard terms may not cover. Exceptions ensure that agreements remain fair and adaptable by acknowledging that not all circumstances can be anticipated. Including exception clauses helps prevent conflicts and ensures that parties can respond appropriately when specific conditions arise.
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.