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Concurrent: Definition, Example and Related Terms

What does it mean when something is Concurrent ?

Concurrent means existing, happening, or done at the same time. In the context of contract law, it refers to contracts, obligations, or clauses that are in effect simultaneously. This is important to understand because concurrent obligations can affect how parties perform their duties and may have implications for compliance and enforcement.

For example, let's say a company has two contracts running concurrently: one for the supply of raw materials and another for the production of finished goods. Both contracts need to be managed simultaneously to ensure that the supply chain operates smoothly.

Concurrent obligations can sometimes lead to conflicts or complications, especially if the terms of the contracts are not aligned. Therefore, it's crucial to carefully review all concurrent agreements and ensure that they do not create any contradictions or impose conflicting duties.

From a legal standpoint, concurrent contracts and obligations can also influence how breaches are handled and how liability is determined. For instance, if an entity is liable under two concurrent policies of insurance, both insurers might share the liability.

Example(s)

  • Scenario Description
    Concurrent Supply and Production Contracts A company has a contract with a supplier to provide raw materials and another contract with a manufacturer to produce finished goods using those materials. Both contracts are in effect at the same time and must be managed concurrently to ensure smooth operations.
    Overlapping Insurance Policies An individual has two separate insurance policies that provide coverage for the same type of risk. If a claim arises, both insurers might share the liability, depending on the terms of the policies and how they are interpreted as concurrent obligations.
    Concurrent Employment Agreements An employee has two part-time job contracts running concurrently with different employers. The terms of each contract must allow the employee to fulfill their duties for both roles without creating conflicts.