Clause guide
Remedies Clause clause: meaning, risks, and what to negotiate
Specifies what legal or practical remedies are available if the contract is broken.
What it means
This clause can limit or expand what happens after a breach, including damages, credits, termination rights, or injunctions.
Common risks
- • Remedies may be too narrow.
- • The other party may have stronger remedies than you.
- • It may make service credits the only remedy.
What to check before signing
- • Are remedies exclusive or non-exclusive?
- • Can both parties seek damages or injunctive relief?
- • Does the clause limit key protections?
Negotiation ideas
- • Keep remedies non-exclusive where possible.
- • Preserve rights for material breaches.
- • Avoid making small credits the sole remedy for serious failures.
Example clause
“Except as otherwise stated, the rights and remedies under this Agreement are cumulative and not exclusive of any rights available at law.”
Frequently asked questions
What is a remedies clause?
It is a clause explaining what relief a party can pursue if the contract is breached.
Related clauses
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