Right of action: Overview, definition and example
What is a right of action?
A right of action refers to the legal ability to bring a lawsuit or take legal action to enforce or protect one’s rights. It’s the legal foundation that allows an individual or entity to seek a remedy for a wrong or breach, typically in the form of compensation, injunction, or other legal remedies.
Why is a right of action important?
A right of action is important because it gives individuals or entities the legal authority to pursue a claim in court. Without a right of action, a party would not be able to hold another party accountable for any harm or breach of contract. It’s essential for protecting one’s legal interests and ensuring that remedies are available when rights are violated.
Understanding a right of action through an example
For example, if a company enters into a contract with a supplier and the supplier fails to deliver the goods as promised, the company may have a right of action. The company can take legal action against the supplier for breach of contract, seeking compensation for any losses incurred. In this case, the company’s right to take legal action is based on the breach of the supplier's contractual obligations.
An example of a right of action clause
Here’s an example of how a right of action clause might appear in a contract:
“In the event of a breach of this Agreement, the non-breaching party shall have the right of action to seek legal remedies, including but not limited to, damages or an injunction, as applicable under the governing law.”
Conclusion
A right of action is a fundamental aspect of legal agreements, providing the basis for pursuing legal claims and remedies. It ensures that parties have a legal avenue to address breaches or violations, safeguarding their rights and interests in contractual and other legal matters. Understanding your right of action can help you take appropriate steps to protect your business and resolve disputes effectively.
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.