Rights and remedies cumulative: Overview, definition, and example
What are rights and remedies cumulative?
Rights and remedies cumulative refers to a provision in a contract that ensures the rights and remedies available to a party are not mutually exclusive, but instead can be exercised in addition to other rights or remedies that may exist under the agreement or by law. This means that if a party has multiple ways to address a breach or violation, they are not limited to just one course of action. Instead, they can pursue all available remedies simultaneously or in sequence, as appropriate.
For example, if a seller breaches a contract, the buyer might have the right to seek both damages for the breach and the right to terminate the contract, depending on the terms of the agreement.
Why are rights and remedies cumulative important?
Rights and remedies being cumulative is important because it provides flexibility and ensures that a party is not restricted in addressing a breach or other violation. It gives the aggrieved party multiple options for seeking a resolution, making it easier to enforce the contract and protect their interests. This can be particularly important when one remedy may not fully compensate for the harm caused, or when different remedies are needed to address different aspects of the breach.
For businesses, having cumulative rights and remedies ensures that they are not left without adequate recourse in case of a violation and that they can pursue all possible avenues to rectify the situation.
Understanding rights and remedies cumulative through an example
Imagine a business signs a contract for the supply of goods, and the supplier fails to deliver the goods as promised. Under the contract, the business has the right to terminate the agreement and seek damages. In addition, the contract may allow the business to claim additional compensation for losses caused by the breach. These rights and remedies are cumulative, meaning the business can pursue both the termination of the contract and damages, without having to choose one over the other.
In another example, a service contract includes a clause that allows a company to both claim a refund for unsatisfactory services and demand that the service provider correct the issue at no extra cost. The company can use both remedies at the same time or in succession.
An example of a rights and remedies cumulative clause
Here’s how a rights and remedies cumulative clause might look in a contract:
“The rights and remedies provided in this Agreement are cumulative and are in addition to any other rights and remedies available to the Parties under applicable law. The exercise of any right or remedy shall not preclude the exercise of any other rights or remedies, and the failure to exercise any right or remedy shall not constitute a waiver thereof.”
Conclusion
Rights and remedies cumulative clauses offer flexibility and protection by ensuring that a party’s options are not limited to a single course of action. By allowing for multiple remedies to be pursued at once, businesses can more effectively enforce their contracts and secure the outcomes they are entitled to.
Including a cumulative rights and remedies clause in agreements helps businesses safeguard their interests, offering multiple avenues for addressing breaches or other violations and ensuring that legal options are fully available.
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.