Equilibrium Contract
/ɪˌkwɪlɪˈbrɪəm ˈkɒntrækt/
Definitions
- (n.) A contract designed to restore or maintain a balance of rights and obligations between parties, preventing undue advantage or detriment.
The parties entered into an equilibrium contract to ensure fair risk allocation throughout the project's duration.
- (n.) In some jurisdictions, a contract that is voidable or unenforceable due to lack of genuine consent, reflecting a state of legal imbalance.
Because of misrepresentation, the agreement was considered an equilibrium contract subject to rescission.
Forms
- equilibrium contract
- equilibrium contracts
Related terms
See also
Commentary
The term emphasizes contractual balance; drafters should clarify the intended equilibrium effect to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.