What is an Explicit Reservation?

Explicit reservation refers to a clear and unambiguous statement or declaration that sets aside or reserves a specific right or interest. This term is commonly used in legal contexts, particularly in the creation of trusts, contracts, and other legal agreements.

In the context of trusts, explicit reservation refers to a provision in a trust agreement that sets aside or reserves a specific right or interest for the benefit of a particular person or entity. For example, the grantor of a trust may explicitly reserve the right to receive income from the trust property, to change the terms of the trust, or to appoint a new trustee.

In the context of contracts, explicit reservation refers to a provision in a contract that sets aside or reserves a specific right or interest for one of the parties to the contract. For example, a party to a contract may explicitly reserve the right to terminate the contract in the event of a breach, to receive damages, or to exercise certain contractual rights.

In general, explicit reservation is used to ensure that a specific right or interest is clearly defined and protected, and to avoid ambiguity or confusion with respect to the rights and interests of the parties involved.