Define: Mother Hubbard Clause

Mother Hubbard Clause
Mother Hubbard Clause
Quick Summary of Mother Hubbard Clause

Included in a mortgage agreement is a mother Hubbard clause, which stipulates that the mortgage encompasses all of the borrower’s debts to the lender, regardless of whether they are connected to the mortgage. This clause functions as a comprehensive safety net that captures all of the borrower’s outstanding debts to the lender.

Full Definition Of Mother Hubbard Clause

A Mother Hubbard clause in a mortgage agreement states that the mortgage secures all debts owed by the borrower to the lender at any time. This means that any additional loans or debts owed to the lender by the borrower will also be secured by the mortgage. For example, if John takes out a mortgage with a Mother Hubbard clause and later takes out a personal loan from the same lender, the personal loan will also be secured by the mortgage on John’s house. The purpose of the Mother Hubbard clause is to protect the lender by ensuring that all of the borrower’s debts are secured by the mortgage, providing the lender with more security in case of default. However, it also means that the borrower’s assets, such as their house, are at greater risk if they are unable to repay their debts.

Mother Hubbard Clause FAQ'S

A Mother Hubbard Clause is a provision in a contract that allows for the inclusion of additional terms or provisions that may not have been specifically mentioned in the original agreement.

The term “Mother Hubbard Clause” is derived from the nursery rhyme character, Mother Hubbard, who had a cupboard that was bare. Similarly, this clause is used to cover any potential gaps or omissions in a contract.

A Mother Hubbard Clause serves to provide flexibility and ensure that any unforeseen or unaddressed issues can still be resolved within the framework of the contract.

A Mother Hubbard Clause should be included in a contract when the parties want to allow for the inclusion of additional terms or provisions that may arise in the future, but are not currently contemplated.

Yes, a Mother Hubbard Clause can be used to modify existing terms of a contract, as long as the parties agree to the modifications and they fall within the scope of the clause.

Yes, there may be limitations on what can be included under a Mother Hubbard Clause. It is important to ensure that any additional terms or provisions are reasonable, lawful, and do not contradict the overall intent of the contract.

Yes, a Mother Hubbard Clause can be used to add new parties to a contract, as long as all existing parties agree to the addition and the terms of the clause allow for such modifications.

Yes, a Mother Hubbard Clause can be used to remove or exclude certain terms from a contract, as long as all parties agree to the removal or exclusion and it falls within the scope of the clause.

Yes, a Mother Hubbard Clause can be enforced in court if it is clear, unambiguous, and does not violate any laws or public policy.

It is always advisable to consult with a lawyer before including a Mother Hubbard Clause in your contract. A lawyer can provide guidance on the specific language to use, potential limitations, and ensure that the clause aligns with your overall contractual objectives.

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Disclaimer

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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