Remedies not exclusive: Overview, definition, and example
What does "remedies not exclusive" mean?
Remedies not exclusive refers to a clause in a contract that states that the remedies provided in the agreement are not the only remedies available to the parties in case of a breach or dispute. This means that, in addition to the remedies explicitly stated in the contract (such as monetary damages, specific performance, or termination), the injured party may also seek other remedies that may be available under applicable law, such as equitable remedies or other legal recourse.
Essentially, this clause preserves the right of the injured party to pursue other legal actions beyond the agreed-upon remedies, if necessary, to fully address the harm caused by the breach.
Why are "remedies not exclusive" clauses important?
The "remedies not exclusive" clause is important because it provides flexibility for the parties involved in a contract. By including this provision, the parties acknowledge that the list of remedies in the agreement is not exhaustive and that they retain the right to seek additional or alternative forms of relief if a situation arises that the contract does not specifically address.
For businesses, this clause ensures that they are not limited to one specific remedy in case of a breach and can explore other legal avenues for addressing harm. For individuals, it offers a broader set of potential remedies, ensuring they are not confined to a set list that may not fully compensate them for damages.
Understanding "remedies not exclusive" through an example
Imagine a company enters into a contract to supply products to a retailer. The contract includes a clause stating that if the supplier fails to deliver on time, the retailer can claim liquidated damages (a pre-determined sum of money). However, the contract also includes a "remedies not exclusive" clause, which allows the retailer to pursue other remedies, such as terminating the contract or seeking additional compensation if the liquidated damages do not fully cover the losses.
In another example, a business hires a consultant under a contract that specifies that, if the consultant fails to deliver the agreed work, the business may seek a refund or payment for the work completed. The "remedies not exclusive" clause ensures that the business can also pursue other remedies under law, such as suing for breach of contract or seeking specific performance, depending on the severity of the breach.
An example of a "remedies not exclusive" clause
Here’s how a "remedies not exclusive" clause might appear in an agreement:
“The remedies provided in this Agreement are cumulative and not exclusive. The Parties agree that the exercise of any remedy specified herein shall not preclude the exercise of any other remedies available at law or in equity. The Party entitled to relief may pursue any remedy or combination of remedies it deems appropriate to address a breach of this Agreement.”
Conclusion
The "remedies not exclusive" clause ensures that the parties to a contract have the flexibility to seek a wide range of legal or equitable remedies in the event of a breach, beyond what is explicitly stated in the contract. This clause helps avoid limiting the injured party’s options and allows them to pursue the most effective course of action to address the harm done. For both businesses and individuals, this provision ensures that all potential remedies are available to fully resolve disputes and enforce rights.
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.