A basket clause is a provision in a contract that allows for the aggregation or combination of multiple breaches or claims into a single claim or breach. This clause is commonly used in contracts to limit liability and avoid excessive litigation. It allows the parties to aggregate multiple breaches or claims into a single claim or breach, which can simplify the dispute resolution process and potentially reduce legal costs. However, the specific terms and conditions of the basket clause may vary depending on the contract and the parties involved. It is important for parties to carefully review and negotiate the terms of the basket clause to ensure that it aligns with their intended goals and objectives.
A basket clause is a provision in a contract that allows for the aggregation or combination of multiple breaches or claims into a single claim or breach. This clause is commonly used in contracts to limit liability and avoid excessive litigation. It allows the parties to aggregate multiple breaches or claims into a single claim or breach, which can simplify the dispute resolution process and potentially reduce legal costs. However, the specific terms and conditions of the basket clause may vary depending on the contract and the parties involved. It is important for parties to carefully review and negotiate the terms of the basket clause to ensure that it aligns with their intended goals and objectives.
A basket clause is a provision in a contract or agreement that allows for the aggregation or grouping of multiple items or obligations into a single category for the purpose of determining compliance or calculating damages.
A basket clause is often included in contracts to simplify the evaluation of performance or breaches. By grouping multiple obligations or damages into a single category, it provides a threshold or limit that must be exceeded before any action can be taken.
Yes, a basket clause can be used in various types of contracts, including commercial agreements, employment contracts, insurance policies, and loan agreements, among others.
When a basket clause is included in a contract, it allows for the aggregation of damages from multiple breaches or events. Instead of pursuing legal action for each individual breach, the damages are calculated collectively, making it more efficient and cost-effective.
Yes, a basket clause can limit liability for breaches by setting a threshold that must be exceeded before any action can be taken. If the damages or breaches fall below the threshold specified in the basket clause, no legal action can be pursued.
While a basket clause can be a useful tool, it is important to ensure that it is drafted clearly and unambiguously. Ambiguous language or inadequate thresholds may lead to disputes or challenges in court.
Modifying or removing a basket clause after the contract is signed would require the agreement of all parties involved. It is advisable to consult with legal counsel to ensure that any modifications are properly documented and agreed upon.
A basket clause is not typically used to waive obligations. Instead, it is used to aggregate or group obligations for the purpose of determining compliance or calculating damages.
A basket clause can be challenged in court if it is deemed to be unfair, ambiguous, or against public policy. The court will evaluate the specific circumstances and language of the clause to determine its validity.
Including a basket clause in a contract can be beneficial in certain situations, particularly when there are multiple obligations or potential breaches involved. However, it is important to carefully consider the specific needs and circumstances of the contract before deciding to include a basket clause. Consulting with legal counsel is recommended to ensure that the clause is properly drafted and aligned with the overall objectives of the contract.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/basket-clause/
- Modern Language Association (MLA):Basket Clause. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/basket-clause/.
- Chicago Manual of Style (CMS):Basket Clause. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/basket-clause/ (accessed: May 09 2024).
- American Psychological Association (APA):Basket Clause. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/basket-clause/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts