Inadmissibility Clause

Inadmissibility Clause

An inadmissibility clause is a provision typically found in contracts or legal documents that restricts the introduction of certain evidence in a legal proceeding. This clause is designed to prevent specific information, documents, or statements from being used against a party in court or during arbitration, thereby protecting sensitive information or maintaining the integrity of negotiations.

In the context of estate planning, for instance, an inadmissibility clause may be included in a settlement agreement to ensure that discussions or offers made during mediation cannot be used as evidence if the mediation fails. This encourages open communication between the parties, as they can negotiate without fear that their statements will be held against them later.

For example, if two parties are negotiating a trust agreement and one party makes a concession during negotiations, an inadmissibility clause would prevent that concession from being cited against them if the negotiations break down, and they end up in litigation regarding the trust’s terms. This fosters a more collaborative environment, allowing for more honest and less guarded discussions.