A clause of accrual is a provision within a legal document, such as a will or a deed, which stipulates that if a designated recipient passes away, their portion will be transferred to another individual instead of being allocated to someone else. This serves as a contingency plan to ensure that the surviving person receives their intended entitlements in full.
A clause of accrual is a provision commonly found in gifts by will or in deeds between tenants in common. This clause allows for the transfer of a deceased beneficiary’s shares to the surviving beneficiary. For instance, if a property is jointly owned by a husband and wife as tenants in common and the husband passes away, the clause of accrual would transfer the husband’s share to the surviving wife. This ensures that the property remains with the surviving beneficiary and does not pass to the deceased beneficiary’s heirs. Another example would be in a will where a parent leaves their estate to their children as tenants in common. If one of the children passes away before the parent, the clause of accrual would transfer the deceased child’s share to the surviving siblings. The clause of accrual plays a crucial role in ensuring that the intended beneficiaries receive the full benefit of the gift or property ownership, while also preventing disputes and confusion over ownership rights.
A clause of accrual is a provision in a contract that specifies when a right or obligation will come into effect.
Contracts that involve ongoing obligations, such as employment contracts, service agreements, and lease agreements, often include a clause of accrual.
The purpose of a clause of accrual is to ensure that rights and obligations are triggered at the appropriate time, based on specific events or conditions.
Common triggers for a clause of accrual include the completion of a project, the achievement of a certain milestone, the expiration of a certain period of time, or the occurrence of a specific event.
Yes, a clause of accrual can be modified or waived by mutual agreement of the parties involved.
If a clause of accrual is not included in a contract, it may be difficult to determine when certain rights and obligations come into effect, which could lead to disputes or misunderstandings.
Yes, a clause of accrual can be enforced by a court if it is clear and unambiguous, and if it does not violate any laws or public policy.
If a party fails to comply with a clause of accrual, the other party may be entitled to damages or other remedies, depending on the terms of the contract and the nature of the breach.
To ensure that a clause of accrual is properly drafted and included in your contract, it is recommended that you consult with a qualified attorney who has experience in contract law.
Yes, there may be limitations on the use of a clause of accrual, depending on the jurisdiction and the specific circumstances of the contract. It is important to consult with an attorney to determine the appropriate use of a clause of accrual in your particular situation.
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: 17th April 2024.
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