Preservation of rights: Overview, definition, and example
What is preservation of rights?
Preservation of rights refers to the legal concept of ensuring that a party retains all of its rights under a contract, law, or agreement, even if certain actions or events occur. This clause typically helps protect a party's ability to assert its rights at a later time, even if it does not immediately take action or enforce those rights. It prevents the waiver or forfeiture of rights due to a failure to act promptly or to assert them in a specific situation.
For example, a party to a contract may choose not to immediately enforce a breach, but a preservation of rights clause ensures that they can still pursue their rights or remedies at a later date.
Why is preservation of rights important?
Preservation of rights is important because it allows parties to maintain their legal options without being prematurely bound by time limitations or actions that could imply a waiver. It ensures that rights are not lost due to oversight, delay, or circumstances where immediate enforcement is not practical or desired.
For businesses and individuals, this provision provides the flexibility to enforce rights at the most appropriate time, without risking the loss of those rights due to missed opportunities or the passage of time.
Understanding preservation of rights through an example
Imagine a company that enters into a contract with a vendor. The contract includes a preservation of rights clause stating that if the vendor fails to deliver goods on time, the company is not required to immediately terminate the agreement or seek damages. The clause preserves the company’s right to do so later, even if they don’t immediately enforce the breach.
In another example, an individual who is involved in a lawsuit may choose not to pursue a particular legal remedy at the moment, but they have a preservation of rights clause in their contract with the opposing party to ensure that they can still pursue that remedy at a later stage if they decide to do so.
An example of a preservation of rights clause
Here’s how a preservation of rights clause might appear in a contract:
“No delay or failure by either Party to exercise any right or remedy under this Agreement shall be deemed to be a waiver of that right or remedy, and each Party’s rights under this Agreement shall remain preserved and fully enforceable at all times.”
Conclusion
Preservation of rights ensures that a party’s legal rights are not lost or waived simply because they choose not to act immediately. It provides flexibility to enforce rights at a later time and safeguards against losing those rights due to timing issues or temporary circumstances.For businesses, including this clause in contracts helps protect their ability to act when needed, without the risk of forfeiting important legal options. For individuals, it ensures that rights can be pursued when the situation warrants, without losing the ability to take action later.
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.