What is blue pencil rule in contract law?
The Blue Pencil Doctrine is a legal concept in common law countries, where a Court finds that a portion of contract is void or unenforceable, but the other part of the contract is enforceable. In that case the Court may order the parties to follow the enforceable part and can delete the voided portion.
What is blue pencil language?
A blue pencil clause allows for a court to step in and revise overly broad language in contracts and provisions, making them more enforceable. Eliminate only those parts of the contract that are not really enforceable. This is typically known as the blue pencil doctrine or divisibility doctrine.
Which states are blue pencil States?
A Quick State-By-State Guide on the Blue Pencil Rule In Arizona, Indiana, North Carolina, South Carolina, and Oklahoma, courts will only reform the covenants that are activity restraints or non-solicitation covenants.
What is a red pencil State?
In states adhering to what is known as the “red-pencil” doctrine, the fact that one provision in a non-compete agreement is overbroad may cause the court to hold the entire covenant unenforceable.
What is Section 24 of Indian contract Act?
Section 24 in The Indian Contract Act, 1872. 24. Agreements void, if considerations and objects unlawful in part. —If any part of a single consideration for one or more objects, or any one or any part of any one of several considerations for a single object, is unlawful, the agreement is void.
What is the blue pencil for drawing?
Non-photo blue (or non-repro blue) is a common tool used in the graphic design and print industry. It is a particular shade of blue that can not be detected by Graphic Arts Cameras or copiers. This allows artists to lay down sketch lines without the need to erase after inking.
Is Florida a blue pencil State?
Florida Blue Pencil Law Florida courts have adopted the “blue pencil” approach to enforcing non-compete agreements and will revise or limit an overly broad non-compete provision to make the agreement reasonable.
Is Texas a blue pencil State?
Texas follows the “blue pencil” rule when enforcing a non-compete or non-solicitation. That rule allows the court to rewrite the portion of the clause that is unreasonable to make it reasonable and enforce the reasonable portion of the clause.
What is Section 27 of Indian Contract Act?
Section 27 of Indian contract Act, 1972 states that, “Agreement in restraint of trade, void – Every agreement by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void.
What is Section 10 of Indian Contract Act?
Section 10 of Indian Contract Act 1872 : “What agreements are contracts” 10. All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.
What is promisor and promisee?
There are at least two parties to a contract, a promisor, and a promisee. A promisee is a party to which a promise is made and a promisor is a party which performs the promise.
Is the Blue Pencil Rule a complete law?
As the blue pencil rule is not a complete law it is subject to numerous variations under multiple jurisdictions. Courts are allowed to alter and modify the unenforceable or unreasonable parts of a contract and make it reasonable under the prevailing law across the states as below:
What is the meaning of the blue pencil test?
Blue-Pencil Test Law and Legal Definition. The blue-pencil test is a judicial standard that the courts use to decide whether to invalidate the whole contract or only the offending words.
Can a blue pencil be used to nullify a contract?
The Blue Pencil Rule allows the legally-valid, enforceable provisions of the contract to stand despite the nullification of the legally-void, unenforceable provisions. However, the revised version must represent the original meaning; the rule may not be invoked, for example, to delete the word “not” and thereby change a negative to a positive.
Why was the Blue Pencil Rule used in Rose and Frank?
In Rose & Frank Co v JR Crompton & Bros Ltd, the Blue Pencil Rule was used to strike out an unacceptable clause in a memorandum of understanding agreement which appeared to try to exclude the jurisdiction of the courts.