Notwithstanding Clause in Contract

Notwithstanding Clause in Contract

The not-withstanding clause in a contract is a legal term that can be found in many contracts. It is also known as a “non-obstante” clause, and it is used to override or nullify any other part of the contract.

This clause is typically used when parties to the contract want to ensure that, in the event of a dispute, the specific provision in question will be upheld, regardless of any other provisions in the contract that might contradict it. This is particularly important in cases where a particular provision may be essential to the parties` agreement, and they want to ensure that it cannot be compromised or challenged in the future.

The not-withstanding clause is especially common in contracts between employers and employees, where it may be used to override provisions related to workers` rights, such as collective bargaining agreements or other labor laws. In such cases, the clause may be used to limit the ability of employees to challenge certain employment practices or to limit the power of unions to negotiate on their behalf.

While the use of the not-withstanding clause is not uncommon, it is important to note that it can be a double-edged sword for both parties to the contract. On the one hand, it can provide a valuable level of protection for the provision in question, ensuring that it will be respected and upheld regardless of any other provisions in the contract. On the other hand, it can also create a situation where either party is essentially able to override any other part of the contract if they so choose, potentially leading to conflicts and disputes down the line.

As a result, it is important for both parties to consider the potential consequences of including a not-withstanding clause in their contract, and to carefully consider the language and scope of any such clause before agreeing to it. In particular, it is essential to ensure that the clause is drafted in such a way as to be clear and unambiguous, so as to avoid any potential misunderstandings or disputes in the future. Additionally, it is important to make sure that the clause is not overly broad or restrictive, as this could create problems down the line if either party wants to challenge or modify the provisions of the contract.

In conclusion, the not-withstanding clause can be a valuable tool for parties to a contract, providing a level of protection and certainty for key provisions. However, its use should be carefully considered and approached with caution, as any potential risks or consequences should be evaluated in advance to ensure that both parties are fully aware of what they are agreeing to. By taking these precautions and working closely with experienced legal professionals, parties to a contract can ensure that they are protected and that their agreement is as clear and unambiguous as possible.