Injunctive Relief Clauses in Contracts
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What is an injunctive relief clause?
An injunctive relief clause gives a party the right to ask a court to order the other side to stop doing something harmful, without waiting for a full trial or damages award. It’s designed to prevent ongoing or irreparable harm. This is particularly important for actions related to confidential information or violation of intellectual property rights, because those wrongs can’t be fixed just with money damages. Injunctive relief gives a party a faster remedy to stop the harm.
Things to consider
- Often focused on confidentiality and intellectual property obligations.
- Still requires court approval — the clause doesn’t automatically grant relief.
- Usually states that both sides agree money damages alone may be inadequate.
Also known as: equitable relief, specific performance, restraining order, or court-ordered injunction
Example injunctive relief language
Sample language from Common Paper Cloud Service Agreement
Despite Section 12.3 (Governing Law and Chosen Courts), a breach of Section 10 (Confidentiality) or the violation of a party’s intellectual property rights may cause irreparable harm for which monetary damages cannot adequately compensate. As a result, upon the actual or threatened breach of Section 10 (Confidentiality) or violation of a party’s intellectual property rights, the non-breaching or non-violating party may seek appropriate equitable relief, including an injunction, in any court of competent jurisdiction without the need to post a bond and without limiting its other rights or remedies.
Risks to watch for in injunctive relief clauses
| ⚠️ Risk Type | Description |
|---|---|
| 📜 Overly Broad Scope | If drafted too broadly, one party may try to use it to restrict normal business activities. |
| 🤷♂️ False Sense of Security | Even with this clause, the court must still decide whether relief is justified. |
| ⏱ Delay in Relief | Courts may still take time to grant injunctions, even if the clause says relief is appropriate. |
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