In legal terms, a clause is a distinct and specific provision or section within a contract, statute, will, or other legal document that addresses a particular aspect of the agreement or law. Clauses serve to define the rights, duties, obligations, and limitations of the parties involved and typically address specific issues or scenarios that may arise during the course of the agreement or legal matter. A clause may cover various topics, including terms of payment, dispute resolution mechanisms, termination rights, warranties, indemnification, confidentiality obligations, and governing law. Clauses are essential components of legal documents as they help clarify the rights and responsibilities of the parties and provide guidance on how the agreement or law should be interpreted and enforced.
A portion of a contract that speaks to a specific issue.
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This glossary post was last updated: 29th March 2024.
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