Reserved: Overview, definition, and example
What is reserved?
"Reserved" refers to something that is specifically set aside, kept, or retained for a particular purpose, individual, or use. In legal, business, or contractual contexts, the term "reserved" is often used to describe rights, duties, or provisions that are intentionally kept with one party, excluded from general use, or not included in the standard terms of an agreement. These reserved rights or provisions may refer to future actions, specific options, or restrictions, and are generally detailed within a contract to clarify their intent and scope.
Why is "reserved" important?
The concept of "reserved" is important because it ensures clarity in contracts and agreements, helping to prevent misunderstandings or disputes. By explicitly reserving certain rights, actions, or obligations, parties can maintain control over specific aspects of a relationship, transaction, or agreement. "Reserved" provisions can protect the interests of one or both parties by specifying conditions under which certain actions can be taken or rights can be exercised. This creates transparency and certainty in how certain provisions will be treated under the terms of the agreement.
Understanding "reserved" through an example
Imagine a company negotiating a lease agreement for office space. The contract includes a clause stating that the landlord "reserves the right" to inspect the premises with 24 hours' notice. This reserved right allows the landlord to enter the leased space to ensure the tenant is adhering to the terms of the lease, such as maintaining the property or conducting business within allowable terms, but only under the conditions specified in the agreement.
In another example, a software company reserves the right to modify the terms of service or pricing in the future by including a "reserved right" clause in its subscription agreement. This clause ensures that the company can change pricing or terms as necessary, but it will notify subscribers of such changes within a set time frame, providing clarity on what can and cannot be changed.
An example of a "reserved" clause
Here’s how a "reserved" clause might look in a contract:
“The Company reserves the right to modify the services provided under this Agreement at any time, with prior written notice to the Client. Any modifications will be implemented no sooner than 30 days after notice has been given. The Client acknowledges and agrees to such reserved rights.”
Conclusion
The term "reserved" plays a crucial role in ensuring that specific rights, actions, or provisions are kept under the control of one or both parties in an agreement. Whether referring to reserved rights in a lease, the right to modify terms in a contract, or the retention of certain responsibilities, reserving provisions helps protect the interests of the involved parties and provides clarity regarding what can and cannot be changed or exercised. By including reserved clauses in contracts, businesses and individuals can maintain control and avoid confusion about future actions or decisions.
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.