Understanding the Legal Term ‘Notwithstanding’

Understanding a range of legal terms when conducting business is essential. As a business, you may often find yourself negotiating contracts, particularly when it comes to office space rentals or renting meeting rooms. It is essential that you understand the agreements you are entering into, but also those of other businesses when providing services. To this end, it is important to be familiar with the legal terminology used. One of the terms that you will come across is ‘notwithstanding’. If you look at the legal term ‘notwithstanding’, you will be able to see its meaning which is provided thoroughly in this Paperback. However, the way to apply this term in your business agreements may not become clear by just reading one article. To make sure you are fully informed, this post will take a deeper look at how and why this term is applied to business agreements in Indonesia.

What is the Legal Meaning of ‘Notwithstanding’?

To ensure you are on the right track, let’s first clarify the meaning of the term ‘notwithstanding’ so you can apply it appropriately in your business agreements. The term ‘notwithstanding’ is used to refer to an exception to certain circumstances in contracts, statutes, and other legal documents. Put simply, this is to say that in the stated situation, the contract does not have to be considered. For example, if a contract states that “notwithstanding anything in this contract to the contrary…”, then this means that whatever is written in the contract, the other side is obliged to comply regardless. Therefore, you must ensure that the contractual terms do not have exceptions or other provisions that would contradict it.

The Use of ‘Notwithstanding’ in a Rental Agreement for a Meeting Space

Recently, the use of the word ‘notwithstanding’ in a contract has become increasingly popular in the primary sector. For example, an arrangement for a rental of office spaces, meeting spaces, and other amenities can have a comprehensive understanding of the legal meaning of notwithstanding at the beginning of the contract. The following example demonstrates its meaning: “In consideration based on the calculation per square meter for renting a space in an office building, which has been discussed and agreed between the parties, the tenant shall pay the rent per square meter and which must be paid no later than the 5th of each month or each time the tenant shall have the right to be charged regardless of the current rental price.” These examples show the importance of understanding the meaning of ‘notwithstanding’ in business agreements. Without considering the phrase, you will find yourself paying more than you had intended to, which could have dire consequences for your business. This is to say that when you read the phrase ‘notwithstanding the current rental price’ you will be able to pay the rental price that was originally agreed without any increases. While it can be complicated to ensure you are getting what you paid during negotiations, always having a keen eye for detail will benefit you greatly in the long run.

The Legal Obligations and Responsibilities that ‘Notwithstanding’ Can Override in Business Contracts

There are many legal obligations and responsibilities, which ‘notwithstanding’ can override in business agreements. Here are several examples to illustrate this:

Common Misunderstandings and Pitfalls in the Use of ‘Notwithstanding’

Misunderstanding the term ‘notwithstanding’ is a common pitfall for all businesses. In fact, this is to the extent that even high-quality legal help can often struggle to interpret it. This is to say that considerable examples will be needed to clarify the practical results of the term and provide clarity on what can be disregarded in contracts. The next example will help you to understand when the use of the word ‘notwithstanding’ is applied in contracts for business agreements in Indonesia: “A breach by the tenant arising as a result of the existence of a conflict”; This would be an example of a situation where a party is exempt from their obligations, as the term ‘notwithstanding’ is clearly stated in the above example. What this means is that the business agreement will remain in force regardless if something illegal has occurred. This would make it clear to the parties involved that they are legally obliged to comply. To further clarify the meaning of a legal term ‘notwithstanding’, most Indonesian materials will help you understand its meaning, but will lack the practical examples that are needed to illustrate its meaning for a business. For example, legal advice may still be needed for interpreting and implementing this term for example in an office space rental contract.