Equitable Relief Clause (Cross-Border)

Summary

This clause on equitable relief can be used in cross-border commercial contracts. It is adapted from U.K. practice with guidance on various international jurisdictions. In an equitable relief clause, the parties acknowledge that a breach or threatened breach of its obligations under the agreement may cause the other irreparable harm and agree that dam ages may not be an adequate remedy. This clause includes practical guidance and drafting notes. An equitable relief clause will usually contain the following elements: (1) recognition that a breach or a threatened breach may result in irreparable harm; (2) acknowledgement that damages are not an adequate remedy; and (3) that the Party not in breach has a right to equitable relief. This clause seeks to ensure that the court exercises its discretion to grant equitable relief such as an injunction or specific performance. For information on available remedies in various jurisdictions, including in Armenia, Australia, Germany, Japan, Spain, ...