Floating Law Clause
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A floating law clause is a provision in a legal contract that allows the terms and conditions of the agreement to be adjusted or modified to reflect changes in the applicable laws and regulations that may affect the parties' rights and obligations.
For example, let's say that a company enters into a contract with a vendor to provide goods or services, and the contract includes a floating law clause. If a new law or regulation is passed that affects the delivery, quality, or price of the goods or services, the parties can negotiate and agree on any necessary changes to the contract terms to reflect the new requirements.
In essence, a floating law clause allows the parties to maintain the validity and enforceability of the contract even if the underlying legal landscape changes over time. It is a useful tool for ensuring that the contract remains relevant and effective throughout its duration, despite external factors that may impact its performance.
For example, let's say that a company enters into a contract with a vendor to provide goods or services, and the contract includes a floating law clause. If a new law or regulation is passed that affects the delivery, quality, or price of the goods or services, the parties can negotiate and agree on any necessary changes to the contract terms to reflect the new requirements.
In essence, a floating law clause allows the parties to maintain the validity and enforceability of the contract even if the underlying legal landscape changes over time. It is a useful tool for ensuring that the contract remains relevant and effective throughout its duration, despite external factors that may impact its performance.
