Agreements in restraint of legal proceedings void, also known as `restraint of trade clauses`, are clauses contained in contracts that restrict or limit an individual`s right to take legal action against a company or organization. These clauses are generally considered unenforceable and void by courts in many countries, including the United States.
The purpose of these clauses is to prevent an individual from taking legal action against a company or organization. These clauses are typically included in contracts between employers and employees, suppliers and customers, or licensees and licensors. The goal is to protect one party from potential litigation by the other party.
However, agreements in restraint of legal proceedings void are generally viewed as a violation of public policy because they restrict an individual`s right to seek legal redress for any harm or injury suffered. This means that such clauses are considered null and void and cannot be enforced in court.
The reason for this is that the law recognizes that every individual has the right to access the courts and seek legal redress for any harm or injury suffered. By including a clause in a contract that restricts this right, employers and organizations are essentially attempting to limit the legal rights of an individual.
The courts have consistently ruled that agreements in restraint of legal proceedings void go against public policy, and therefore, cannot be enforced. This means that if an individual signs a contract that contains such a clause, they are still entitled to take legal action if necessary, despite the agreement.
Employers and organizations should avoid including clauses that restrict an individual`s legal rights in their contracts. Such clauses are unenforceable and may lead to legal action against them.
In conclusion, agreements in restraint of legal proceedings void are not legally enforceable and go against public policy. Individuals have the right to seek legal redress for any harm or injury suffered, and no contract can enforce limitations on this right. Employers and organizations should avoid including such clauses in their contracts and instead focus on ensuring equitable, fair business practices that do not infringe on individual rights.
