January 30, 2023 | Posted in:Uncategorized
When a Contract Contains a Clause Contrary to Law, It is…
Contracts are an essential part of doing business. They serve as a legally binding agreement between two parties, outlining the terms and conditions of their relationship. However, what happens when a contract contains a clause that goes against the law? This can be a tricky situation, and it`s important to understand your options as a party to the contract.
First and foremost, it`s important to note that a clause in a contract that is contrary to law is generally unenforceable. This means that if a party tries to enforce the clause, a court is likely to strike it down. This is because the law takes precedence over any private agreement between parties. If the clause in question violates a specific law, such as a law relating to consumer protection or discrimination, it is likely to be deemed unenforceable.
However, it`s important to note that just because a clause in a contract may be unenforceable, it doesn`t necessarily mean that the entire contract is invalid. A court may choose to “sever” the offending clause, meaning that it is removed from the contract, but the rest of the agreement remains in force. Alternatively, the court may choose to invalidate the entire contract if the offending clause is seen as fundamental to the overall agreement.
If you are a party to a contract that contains a clause that goes against the law, it`s important to take action. Depending on the circumstances, you may want to:
– Request that the offending clause be removed or amended. This can be done through negotiation with the other party or may require legal intervention.
– Refuse to sign the contract. If you are aware of a clause that goes against the law before signing the contract, you may choose to refuse to sign the agreement.
– Seek legal advice. If you are unsure about the legality of a clause in a contract, it`s important to seek legal advice. This can help you understand your options and protect your rights.
In conclusion, if a contract contains a clause that is contrary to the law, it is likely to be unenforceable. While this can be a complex situation, it`s important to understand your options and take action to protect your interests. Whether through negotiation, refusal to sign, or seeking legal advice, it`s essential to take steps to ensure that any contracts you sign are legally sound and enforceable.