Define: Carveout

A carveout refers to an exception or exclusion made in a legal agreement or contract. It allows certain provisions or terms to be exempted from the general rules or obligations outlined in the agreement.

Carveouts are often included in contracts to address specific circumstances or situations that may require different treatment or consideration. They provide flexibility and allow parties to deviate from the standard terms when certain conditions are met.

An example of a carveout could be a limitation of liability clause in a contract. While the contract may generally hold both parties liable for any damages caused, a carveout could specify that one party will not be held responsible for damages resulting from acts of nature or unforeseen events beyond their control.

Yes, carveouts are legally binding as long as they are properly drafted and included in the contract. They should be clear, specific, and agreed upon by all parties involved.

Yes, it is possible to add a carveout to an existing contract through an amendment or addendum. However, it requires the consent and agreement of all parties involved.

If a specific provision or exception is not included as a carveout in a contract, it will generally be subject to the general terms and obligations outlined in the agreement. Parties may not have the flexibility to deviate from those terms in the absence of a carveout.

While carveouts provide flexibility, they must still comply with applicable laws and regulations. They cannot be used to exempt parties from legal obligations or responsibilities that are mandated by law.

A carveout can be revoked or removed from a contract if all parties involved agree to do so. This would typically require an amendment or modification to the original contract.

It is always advisable to consult with a lawyer or legal professional when drafting or including carveouts in a contract. They can provide guidance, ensure compliance with relevant laws, and help protect your interests.