Contract Glossary
Clause
Definition
A clause is one specific section of a contract that deals with one specific thing. Payment terms, confidentiality, termination rights — each of these is its own clause. Think of clauses as the building blocks of a contract.
In Practice
When you're reviewing a contract, go clause by clause — don't skim. A single unfavorable clause buried on page 7 can cost you more than the entire contract is worth. If a consulting agreement includes an auto-renewal clause you missed, you might be locked in for another year when you thought you were wrapping up.
Common in these contract types
Related terms
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Frequently asked questions about clause
Payment terms, scope of work, termination rights, liability limits, and dispute resolution. These five clauses control the money, the work, the exit, the risk, and what happens when things go wrong. Everything else matters too, but if these five are solid, you've covered the big stuff.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.