An avoidance clause shifts potential liability, in whole or in part, from one party to another.
This is not necessarily a bad thing. There are several different avoidance clauses that can be included in a contract and in some cases there can be more than one. Look at whether the clause shifts potential liability from one party to another and remember that the existence of an avoidance clause doesn’t necessarily make the party protected by the clause the bad guy because sometimes clauses serve legitimate business interests. This video discusses whether or not the implied covenant of good faith and fair dealing be waived, and reviews changing implied contract duties.
Runtime: 7 minutes
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