Voluntary exclusion: Overview, definition, and example
What is voluntary exclusion?
Voluntary exclusion refers to a situation where an individual or entity willingly removes themselves from a specific activity, program, or agreement. This term is commonly used in contexts like gambling, contracts, and business partnerships. In gambling, for instance, voluntary exclusion allows a person to self-ban themselves from casinos or gambling activities to prevent compulsive behavior. In business or legal settings, it may involve a party opting out of a contract, decision-making process, or group activity for various reasons, including personal choice or conflict of interest.
Why is voluntary exclusion important?
Voluntary exclusion is important because it gives individuals or entities the autonomy to protect themselves from situations that may lead to harm, conflict, or undesirable outcomes. In gambling, it’s a preventive measure for those struggling with addiction. In business, voluntary exclusion can help prevent conflicts of interest, ensure compliance with ethical standards, or protect parties from potential risks or liabilities. This type of exclusion also fosters personal responsibility, allowing individuals or entities to take proactive steps in managing their involvement in certain activities or agreements.
Understanding voluntary exclusion through an example
Imagine a business partnership where one partner decides they no longer wish to be involved in the decision-making process due to a potential conflict of interest with a new client. This partner might opt for voluntary exclusion, stepping away from certain business activities or meetings to avoid any appearance of bias. In another example, a gambler who recognizes they have a problem with addiction might request voluntary exclusion from a casino, ensuring they are not allowed to participate in any future gambling activities.
In the case of a contract, a company may decide to voluntarily exclude themselves from a particular provision or obligation within the agreement due to changes in business strategy or compliance concerns.
An example of a voluntary exclusion clause
Here’s how a voluntary exclusion clause might appear in a contract:
“The Participant may, at any time and without cause, voluntarily exclude themselves from participating in any decisions regarding this Agreement. Upon such exclusion, the Participant shall cease to have any responsibility or liability related to the excluded activity and shall not be bound by any further obligations under this section.”
Conclusion
Voluntary exclusion allows individuals or entities to take control of their involvement in certain activities, agreements, or programs. Whether in gambling or business, it’s a tool for managing risks, avoiding conflicts of interest, and protecting personal or organizational well-being. By choosing voluntary exclusion, a party ensures they remain in control of their participation, making decisions that align with their values, interests, and circumstances.
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.