Accrued Rights: Everything You Need to Know
Accrued rights refer to rights that are established and backed by legal authority and are capable of demanding remedy to any wrongs committed. 4 min read
2. Accrued Cause of Action
3. Statute of Limitations and Accrued Right
4. Sample Clauses: Surviving Obligations
5. Examples of Accrued Rights
Accrued rights refer to rights that are established and backed by legal authority and are capable of demanding remedy to any wrongs committed. They also rights that could attach themselves to their principal as:
- Subordinate claims
The term could also be used as an original or independent demand that could happen, arise, or come into existence. For instance, “The right of action did not accrue within six years.”
Accrued Interest on Principal
It also refers to the accrued interest on the principal a depositor places in a savings account or stock ownership, so that the principal increases by the earned interest amount after a certain time.
Accrued Cause of Action
Accrued right could refer to a cause of action, i.e., the facts that grant the right to judicial relief to a person, and that accrues from the date the plaintiff's injury is sustained. In cases where the injury is not immediately discoverable, the cause of action will accrue once the injury is finally discovered by the plaintiff. This scenario is more frequent in cases involving malpractice or fraud.
For instance, a woman undergoes an appendectomy, and three years later, she still feels some pain on the right side. Another physician examines her and finds a bit of surgical sponge around the site of the surgical operation. Though the injury occurred three years earlier (at the time of appendectomy), the cause of action will accrue from the date the injury was discovered by the other physician.
Statute of Limitations and Accrued Right
It is important to note this distinction due to the statue of limitations, which is the time stipulated by the law within which a court case or lawsuit must commence after the cause of action accrues. For cases that involve injuries that are not readily discoverable, it is unfair to bar the plaintiff from filing because the lawsuit did not commence within the stipulated timeframe.
Sample Clauses: Surviving Obligations
Expiration, relinquishment, or termination of this agreement (with respect to one of its provisions or in its entirety) shall be done without prejudice to the rights which have accrued to either party under the agreement prior to its expiration, relinquishment or termination.
Such expiration, relinquishment, or termination shall not relieve the parties to the agreement from any obligations that were expressly stated to survive expiration or termination of this agreement.
Except if provided elsewhere, the expiration or termination of the agreement shall not affect any proviso which by implication or express statement is meant to either continue or come into effect on the expiration or termination of the agreement.
Termination of this agreement by a contracting party is not an exclusive remedy; other remedies will be made available to the terminating party, at law and in equity.
Expiration, relinquishment, or termination of this agreement (with respect to one or more countries or jurisdictions or in its entirety) shall be done without prejudice to the rights which have accrued to either party under the agreement prior to its expiration, relinquishment, or termination.
If the agreement is terminated (not in entirety) but with respect to terminated territory, the foregoing provisions (in respect to the terminated territory) will remain in effect to the extent they would survive and apply in the event of termination or expiration of the agreement in its entirety, and all non-surviving provisions in accordance with the above shall cease upon termination of the agreement and will no longer be in force.
Notwithstanding the expiration or termination of the agreement, neither contracting party is relieved from all obligation incurred prior to the expiration or termination of the agreement, including payment obligations that accrued before the termination. Upon expiration or termination of the agreement, each party will return all copies of documents and written confidential information to the other party.
Expiration, relinquishment, or termination of this agreement (with respect to one of its provisions or in its entirety) shall be done without prejudice to the rights which have accrued to either party under the agreement, including any royalty or payments owed prior to its expiration, relinquishment or termination.
Examples of Accrued Rights
In the case of Garratt vs. Ikeda1 NZLR 577 , a deposit had not been paid as at the time of cancellation. In this instance, the right of deposit arose independent of the contract's cancellation. As such, whether the contract continued or not, the deposit had to be paid; therefore, it is an unconditional accrual. The court held that the vendor was entitled to enforce the payment of the deposit as an “unconditionally accrued right.”
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