A carve out is a legal provision that exempts certain assets or liabilities from a larger agreement or transaction. This can include excluding specific assets from a sale or exempting certain liabilities from a contract. Carve outs are typically included in contracts or agreements to provide clarity and specificity regarding the scope of the agreement and the assets or liabilities that are not included.
A carve out refers to a provision in a contract or agreement that exempts or excludes certain specific terms, obligations, or provisions from the overall scope or application of the agreement.
Carve outs are commonly used in contracts to address specific exceptions or exclusions that parties want to make clear and explicit within the agreement.
Common examples of carve outs include exceptions for certain liabilities, obligations, or warranties, exclusions from non-compete or non-disclosure clauses, or exemptions from indemnification provisions.
Carve outs are typically drafted as separate clauses or sections within a contract, clearly outlining the specific terms or provisions that are exempted or excluded from the agreement.
Yes, carve outs are legally binding if they are properly drafted and agreed upon by all parties involved in the contract.
Yes, carve outs can be negotiated between the parties involved in a contract. It is common for parties to discuss and agree upon the specific terms and conditions of the carve out provision.
A carve out can be challenged in court if one party believes that the provision was improperly drafted or if there is a dispute regarding its interpretation or application. However, the enforceability of a carve out will depend on the specific circumstances and the language used in the contract.
While carve outs can be tailored to address specific needs and concerns, they must still comply with applicable laws and regulations. It is important to ensure that carve outs do not violate any legal requirements or public policy considerations.
It is highly recommended to consult with a lawyer when drafting or negotiating a carve out provision in a contract. A lawyer can provide guidance, ensure compliance with relevant laws, and help protect your interests in the agreement.
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: 4th April 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/carve-out/
- Modern Language Association (MLA):Carve Out. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/carve-out/.
- Chicago Manual of Style (CMS):Carve Out. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/carve-out/ (accessed: May 09 2024).
- American Psychological Association (APA):Carve Out. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/carve-out/
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