Powers cumulative: Overview, definition, and example
What does "powers cumulative" mean?
"Powers cumulative" refers to the concept in legal agreements or contracts where the powers, rights, or authority granted to a party are not exclusive or limited by other provisions in the document. Instead, each power granted is cumulative, meaning that the party may exercise any or all of the granted powers at any time, in addition to any other rights or powers they already possess. This clause ensures that no single power or right overrides or cancels out another, and all powers granted remain in full effect unless explicitly stated otherwise.
For example, if a contract grants a party the right to enforce certain terms and also the right to take legal action, these rights are cumulative, meaning the party can use both rights independently or together, depending on the circumstances.
Why are powers cumulative important?
The concept of cumulative powers is important because it provides flexibility and ensures that a party has a broad range of options to protect its interests or fulfill its obligations under the contract. By making powers cumulative, the contract allows for a more robust and comprehensive exercise of rights, enabling parties to take action when necessary without being restricted to only one course of action. This flexibility is particularly useful in contracts that involve complex relationships or multifaceted responsibilities.
For example, in the context of a loan agreement, a lender may have several powers, such as the ability to demand immediate payment, charge interest, or take legal action against a borrower. These powers are cumulative, meaning the lender can exercise all of them simultaneously if needed to enforce the terms of the agreement.
Understanding "powers cumulative" through an example
Imagine a company enters into a partnership agreement that includes various provisions granting each partner certain powers, such as the power to approve budgets, make investments, or terminate the agreement under certain conditions. The clause specifying that the powers are cumulative means that if one partner exercises one of these rights (e.g., approves a budget), it does not prevent them from exercising other rights (e.g., making an investment or taking action to terminate the agreement). The partner can freely use any combination of their granted powers as needed without limitation.
In another example, a landlord leases a property and includes a clause in the lease agreement granting the right to terminate the lease early, as well as the right to collect unpaid rent. These rights are cumulative, meaning the landlord can enforce both rights at once if the tenant fails to pay rent and breaches the lease.
An example of a "powers cumulative" clause
Here’s how a clause about powers cumulative might appear in a contract:
“The rights, powers, and remedies provided to the Parties under this Agreement are cumulative and are in addition to any other rights, powers, and remedies available at law or equity. No right or remedy is exclusive of any other, and the exercise of one or more rights shall not preclude the exercise of any other right or remedy.”
Conclusion
The "powers cumulative" concept ensures that the rights and powers granted in a contract or legal document can be exercised independently or together, providing flexibility and a broad range of options for the parties involved. This is important for ensuring that no single power is restrictive or exclusive of others, and it allows parties to take the most appropriate action to protect their interests or fulfill their obligations. Whether in business agreements, loan contracts, or legal disputes, cumulative powers enable more comprehensive and effective enforcement of rights and responsibilities.
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.