Business professionals likely have heard the legal term, “contiguous”, when discussing contracts or transactions. But what does contiguous actually mean? Understanding this concept is important for those entering into important legal agreements.
Contiguous Defined
Contiguous is a technical term that means “touching” or “adjoining”. It can be used to describe physical objects such as land boundaries or it can describe non-physical objects, such as the relationship of clauses in a contract.
The term also has implications in the context of contracts and agreements. For example, if you are selling a piece of land that is next to the piece of land owned by your neighbor, the two pieces of land could be referred to as “contiguous”.
Contiguous in Contracts – Why It Matters
In the context of contracts, it is important to determine what entities are contiguous, and which are not. This distinction can have important legal ramifications. When two or more parties enter into an agreement, they need to lay out the exact boundaries of the agreement. If a party’s obligations and rights are not contiguous, as defined in an agreement, then those obligations and rights may no longer apply.
By understanding what is meant by “contiguous” in a legal agreement, business professionals can ensure that they are only entering into binding agreements and are not unknowingly leaving themselves open to liabilities or legal disputes.