Legal Definition of a Clause

Legal documents are usually divided into several numbered sections, making it easier to navigate the document. These distinct sections, paragraphs, segments and expressions are called “clauses”. Clauses are commonly used in contracts, deeds, wills, settlement agreements, and other important documents. To explore this concept, consider the following clause definition. The following week, Maria`s mother filed a civil lawsuit against Louise, demanding a full refund of what she paid her for the dress. Although there is no official contract with legal language, Louise`s reference on the work order that the dress had to be finished and delivered by a certain date before the dance party was a time clause. In a grammatical sense, a sentence is a group of words that contains a subject and a verb, or it can only refer to part of a sentence. For example, the phrase “If Jerry gets this new job” is a clause, but not a sentence. In a legal context, a clause is part of a written legal document. The breakdown of these documents by section or paragraph facilitates reference to relevant information. As an example clause, attorney Mark can refer the court to a specific section of his client`s employment contract and say: We help simplify each transaction and provide a higher level of customer service to build long-term trusting relationships with our clients.

Our goal is to support our clients with practical and zealous legal representation and to eliminate the difficulty of any legal transaction. Clauses can be so-called one-size-fits-all clauses, meaning they are fairly standard in any contract and, as such, are usually agreed terms that require little debate or negotiation. Contracts may also contain very specific clauses relating to a unique feature of the agreement and certain conditions that exist at the time of negotiation. There is no limit to the number of clauses contained in a contract, and they can cover virtually every aspect of how companies do business throughout the term of the contract. A clause imposes certain conditions under which the parties agree to act during the term of the contract.3 min read This article will help you understand best practices for using definitions in a contract. If you have contract law issues in your state, a contract drafting attorney can help. Definition clauses are an essential part of any contract. Read the following frequently asked questions about definition clauses to learn more about this important contract section: Not only are the above clauses fairly standard in most contracts, but the language of the clauses generally does not change from contract to contract.

However, there are model clauses in most contracts that inherently require wording specific to existing terms that are unique to the agreement to be concluded. The analysis of contracts and contract clauses is an essential skill for lawyers, academics and auditors. This allows a person to understand the contractual relationship and assess whether all parties have adhered to the contract. Five elements of a general contract are analyzed in this process: Definition clauses, also known as contract definitions, are the terms defined in a legal document. The wording of the definition clauses reduces the likelihood of misunderstandings between the parties. The section on defined terms should be clear and written in plain language. A section, sentence, paragraph, or segment of a legal document, such as a contract, deed, will, or incorporation, that relates to a particular point. What is a contractual clause? This is a very specific provision of a legal agreement that relates to an important point of agreement between the parties to the contract. A clause prescribes certain conditions under which the parties agree to act during the term of the contract.

As a rule, clauses are found towards the end of the contract, after addressing the necessary elements of a legal agreement, namely the offer, acceptance, intention to establish a legal relationship and consideration. An important point to remember is that clauses cannot violate existing laws, regardless of the intention of the parties. Here are some examples of clauses you`ll find in virtually every agreement: In 2011, Gulliver Preparatory School in Florida decided not to renew its principal`s employment contract. The director, Patrick Snay, 60, filed a civil lawsuit alleging age discrimination. The school settled with Snay and agreed to pay him $150,000. The settlement included a confidentiality clause limiting Snay to discussing the case only with his wife, lawyer and other professional lawyers. He probably didn`t think that restriction would include talking to his 18-year-old daughter about the settlement, but it turned out it was his downfall. “Contractual Clause”. Merriam-Webster.com Legal Dictionary, Merriam-Webster, www.merriam-webster.com/legal/contract%20clause. Retrieved 23 July 2020. Each term has a corresponding definition in case questions of applicability arise in the future. Contracting Parties may refer to the definition clause to answer specific questions.

A clause prescribes the conditions under which the contract is legally enforceable and determines the terms of the contract. Contracts often contain model clauses or model clauses found in most contracts. These model clauses do not require much negotiation. Sometimes contracts may also contain very specific clauses adapted to a particular case or the duration of the transaction. Here is an article on the use of the term definition clause.

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