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Glen Banks, a partner at Fulbright & Jaworski, writes that the First Department's decision in Riverside South Planning Corporation v. CRP/Extell Riverside, L.P. illustrates the need to clearly state the intended scope of a "sunset provision" in a contract. The parties should consider whether they intend such a provision to apply to the entire agreement or only to certain of its provisions and should take steps to ensure that the language of their contract clearly expresses their intent. Otherwise, the parties may find themselves in litigation concerning the scope of the sunset provision and a party may be surprised by the court interpreting the language in a way the party never intended.
April 13, 2009 at 12:00 AM
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