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- A sunset provision, embedded in statutes or regulations, acts as a temporal boundary, causing automatic repeal on a predetermined date. When this date arrives, the relevant legal language becomes null and void, compelling lawmakers to extend the provision through amendments.
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Mar 15, 2024 · Sunset provisions, also known as sunset laws, are clauses in statutes or regulations that automatically expire on a specified date. This article explores the intricacies of sunset provisions, their advantages, disadvantages, and real-world examples.
- Definition
- Advantages
- Drawbacks
- Sunset Clause Insurance
- Sunset Clause Share Conversion
- Sunset Clause Real Estate
- What Are Sunset Laws?
- What Is A Sunset Clause?
- What Is A Sunset Date?
- What Is A Sunset Clause in A Contract?
According to Investopedia, a sunset clauseis defined as: What is notable with this definition is that a statute or contractual clause automatically expireswith the passing of time.
The advantage of a sunset clause in a contract is that the obligations of a party (or both parties) automatically will expire. In other words, a contractual party does not have to formally trigger the termination of the contract or invoke rights under the contract to no longer be legally bound by certain provisions. Another advantage is that a suns...
Sunset provisions can also have drawbacks as well. In many cases, when a contract is signed, the contractual parties store the contract somewhere and rarely come back to it. A contractual party may forget that certain obligations are slated to “sunset” or expire after a certain period of time. As such, if they are not notified that the sunset provi...
Parties to an insurance contract can include a sunset date for certain coverages to automatically expire or not include any sunset provision. Here is the description of insurance coverage where the parties have specifically agreed not to include any sunset provision:
Corporations may use a sunset clause or provision to convert certain classes of shares to another within their capital stock. Here is an example where the Counsil for Institutional Investors recommending a time-based sunset clause to deal with certain voting rights related to the Facebook stocks:
Parties to a real estate transaction can use a sunset clause to provide that they must conclude the transaction by no later than a certain date. If the deal is not “closed” by that date, the buyer and seller can walk away from the deal. For example: Here are a couple of fictional sunset clauses we’ve drafted to give you an idea of how they may be p...
Sunset lawsor a sunset rule are statutes, regulators or other legislative provisions that will automatically be repealed by a certain date or within a certain timeline. Typically, a sunset law is enacted when the government needs to act quicklyand did not have time to study the appropriateness or consequences for the adoption of certain laws. The g...
A sunset clause is a contractual provision stipulating that the obligations of the contract or specific provisions will cease to produce legal effectsafter a certain time. For example: In 2015, Goldcorp announced such a plan of arrangement whereby the stockholders were given a deadline to exchange their shares.
A sunset date is a date past which a contract is automatically terminated or a statute or regulation is automatically repealed. A sunset date is like an “expiration date” or “termination date”. The legal obligations of a party to a contract will stop, cease to have legal effect or will no longer be enforceable after the sunset date.
A sunset clause in a contract provides for a date past which the same clause, other clauses or the entire contract will terminate. The termination of the contract can be linked to a specific date or to an event. Here is an example of a sunset clause linked to a defined date: The parties may also sunset certain contractual obligations with the occur...
A sunset provision, sunset clause, or sunset law is a statute or provision of a statute establishing a date on which an agency, law, or benefit will expire without specific legislative action, usually in the form of formal reauthorization by Congress or a state legislature.
Sunset law, also known as sunset provision, is a law that automatically terminates an agency, a law, or a government program, that fails to procure legislature approval beyond a fixed period of time.
Definition of sunset provision noun from the Oxford Advanced Learner's Dictionary. sunset provision. noun. /ˈsʌnset prəvɪʒn/ (also sunset clause. /ˈsʌnset klɔːz/ ) (law) part of a law, a rule or an agreement that states that it will no longer apply from a particular date.
Sep 14, 2022 · A sunset clause (also known as a sunset provision) is a provision in a contract that limits how long a contract is valid. As a result, the contract will no longer be effective after the specified date in the contract, and the parties involved can legally walk away from the contract.
noun [ C ] LAW uk us. Add to word list. → sunset clause. (Definition of sunset provision from the Cambridge Business English Dictionary © Cambridge University Press) Examples of sunset provision. sunset provision. Once so confirmed, the laws were to be in continual force, unless repealed or a sunset provision was included. From. Wikipedia.
