Injunctive relief
Injunctive relief is a court order requiring a party to do or stop doing something, such as misusing confidential information, rather than paying money.
What it means
Most contract disputes end with money damages. Injunctive relief is different: it is a court order telling someone to stop doing something, or occasionally to do something. It is used when money cannot fix the harm, such as a former contractor sharing trade secrets or using your brand.
Many contracts include a clause in which the parties agree that breaching certain terms, like confidentiality, non-solicitation, or IP provisions, would cause “irreparable harm.” The clause then says the injured party may seek an injunction, often without posting a bond. These statements help, but a court still applies its own legal standards and may require a bond anyway.
Here is how it plays out. A small ecommerce brand shares its supplier list with a marketing contractor under an NDA. If the contractor starts passing the list to a competitor, the brand can ask a court for a temporary restraining order within days, rather than waiting a year for a damages award.
The clause usually favors the party sharing information or IP. It often comes with a carve-out from arbitration so that party can go straight to court.
What to watch for
- Check which obligations the clause covers. It is usually limited to confidentiality, IP, and restrictive covenants.
- See whether it is mutual or only protects one side.
- Look for a carve-out from any arbitration or mediation requirement, so urgent requests can go directly to court.
- Check whether the clause waives the bond requirement, and remember a court may still require one.
- Remember that agreeing to “irreparable harm” in advance can make it easier for the other side to get an order against you.
Example clause
Each party acknowledges that a breach of Section 7 (Confidentiality) may cause the other party irreparable harm for which monetary damages would be inadequate. The non-breaching party may therefore seek injunctive relief in any court of competent jurisdiction, in addition to any other remedies available at law or in equity.
If someone misuses confidential information, the other side can go straight to court to stop it, not just sue for money later.