Protecting Your Legal Rights: The Critical Impact of Contract Clauses
A new client approached us to review a villa construction contract, seeking to ensure there were no hidden risks and that their rights were fully protected. During our comprehensive review, we identified a crucial clause that could have significantly restricted their legal options in the event of a dispute with the contractor.
The contract explicitly barred the client from taking any disputes to state courts. Instead, all conflicts were to be resolved exclusively through BANI arbitration, a private, non-governmental forum that mandates amicable settlements. Consequently, the client would have no recourse to appeal in higher courts if they disagreed with BANI's decision, as the contract stipulated that BANI's rulings are final and not subject to challenge.
We immediately brought this clause to the client's attention and outlined the significant risks it posed. Specifically, the restriction on taking disputes to state courts would have deprived the client of full legal protection, leaving them vulnerable in the event of a conflict. We recommended amending the contract to remove this clause, ensuring the client retained the ability to defend their rights in court if necessary.
The client accepted our counsel and successfully negotiated the removal of the clause. This modification resulted in a more favorable contract, safeguarding the client's right to pursue legal action through the courts in the event of a dispute.
This case underscores the vital importance of thoroughly reviewing contracts before signing to avoid potential complications. Our firm specializes in identifying hidden risks and safeguarding our clients' rights. We strongly recommend seeking legal counsel at the earliest opportunity, as addressing issues proactively is far more effective than resolving them later.
