Restriction on Rights or Claims Clause Samples
A Restriction on Rights or Claims clause limits the ability of one or both parties to assert certain legal rights or pursue specific claims under the agreement. Typically, this clause may prevent parties from bringing lawsuits for particular types of damages, restrict the timeframe in which claims can be made, or waive certain remedies altogether. Its core function is to manage and reduce potential legal exposure, ensuring that disputes are contained within agreed boundaries and minimizing the risk of protracted or unexpected litigation.
Restriction on Rights or Claims. Until all of the Principals’ Obligations have been irrevocably paid or discharged in full, the Guarantor will not, unless the Lender otherwise directs:
Restriction on Rights or Claims. Until all of the Guaranteed Obligations have been irrevocably paid or discharged in full, the Guarantor will not, unless the Lender otherwise directs:
(a) make or enforce any claim (including, but not limited to, a claim by way of set-off or counterclaim) or right against any Obligor or prove as a creditor of any Obligor in competition with the Lender, whether in respect of any payment under this Guarantee made by the Guarantor or otherwise; or
(b) be entitled to claim or have the benefit of, any set-off, counterclaim or proof against, or dividend paid on a winding-up or administration of or composition with creditors by any Obligor or any Obligor’s estate; or
(c) be entitled to claim or otherwise obtain the benefit (by way of subrogation or otherwise) of any security or guarantee or indemnity at any time held by the Lender for or in respect of any of the Guaranteed Obligations; or
(d) claim or enforce any right of contribution against any co-surety.