Full force and effect: Overview, definition and example

What is full force and effect?

Full force and effect means that a contract or agreement is legally valid and enforceable. It confirms that all terms and conditions of the agreement are active and must be followed by both parties.

Why is full force and effect important?

This phrase is important because it assures that the contract is legally binding and that all obligations within it are enforceable. Without this clause, there could be uncertainty about whether the terms of the agreement apply, which could lead to disputes or confusion.

For example, in a loan agreement, a "full force and effect" clause ensures that the borrower must follow all the terms, including repayment schedules, from the moment the contract is signed.

Understanding full force and effect through an example

Imagine a company enters into a contract with a supplier. The contract includes a clause stating that it is in full force and effect. This means both the company and the supplier are legally bound to adhere to the terms, such as delivery schedules and payment terms, starting immediately after signing.

In another case, a company might use a "full force and effect" clause to confirm that the terms of a non-compete agreement remain enforceable even if other parts of the agreement are changed.

Example of a full force and effect clause

"This Agreement shall be in full force and effect upon execution by both parties and shall remain enforceable unless terminated as provided herein."

Conclusion

Full force and effect is a standard clause in contracts that ensures the terms are legally binding and enforceable. It provides clarity and security to both parties, confirming that they must adhere to the agreement’s conditions.

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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.