Colorable: Definition, Example and Related Terms
What is a Colorable ?
Imagine you're playing a game of chess. Your opponent makes a move that looks perfectly legal at first glance. But when you take a closer look, you realize that it's not allowed by the rules of the game. That's what 'colorable' means in the world of contracts. It's something that seems to be true, valid, or right, but it might not be when you dig deeper.
In contract law, a 'colorable' claim or action is one that appears to be legally valid. It might look like it follows all the rules at first glance. But when you examine it more closely, you might find that it's not valid at all. It's a bit like a magic trick - it seems real until you figure out how it's done.
Scenario Description A Toy Manufacturer's Contract A toy company signs a contract with a supplier to provide materials. The contract seems to be fair and legally binding, but it turns out the supplier has included a clause that allows them to increase prices without notice, making the contract 'colorable'. A Musician's Recording Contract A musician signs a contract with a record label. The contract appears to be valid, but it includes a 'colorable' clause that gives the label rights to the musician's future work, even if they part ways. A Software Development Contract A software developer signs a contract for a project. The contract seems to be legally valid, but it has a 'colorable' clause that allows the client to cancel the project without paying for the work done.