RACE Clause Samples

The RACE clause establishes the rules and procedures for resolving situations where multiple parties have competing claims or interests in the same asset or right. In practice, this clause typically determines the priority of claims based on the order in which they are filed, registered, or otherwise perfected, such as in the context of liens, mortgages, or intellectual property rights. By clearly setting out how priority is established, the RACE clause helps prevent disputes and provides certainty to parties about their standing relative to others with similar claims.