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Contract Glossary

Stipulation

Definition

A stipulation is a specific condition, requirement, or term that parties agree to as part of a contract or legal proceeding. In contract law, a stipulation is any explicitly stated term that defines an obligation, restriction, or condition. In litigation, a stipulation is a formal agreement between opposing parties (or their attorneys) on certain facts or procedures, reducing the need for contested evidence or hearings. Stipulations make contracts clearer and legal proceedings more efficient by establishing agreed-upon ground rules.

In Practice

A construction contract includes several stipulations: the project must be completed within 180 days, all materials must meet LEED certification standards, subcontractors must carry $2 million in liability insurance, and change orders over $5,000 require written approval. Each stipulation creates a specific obligation that, if not met, could constitute a breach. During a later dispute, the opposing attorneys stipulate to certain facts (the project start date, contract price) to streamline the trial.

Example Clause

The following stipulations shall apply to all work performed under this Agreement: (a) All materials shall comply with specifications set forth in Exhibit B; (b) Contractor shall maintain insurance coverage as described in Section 8; (c) No work shall commence until Contractor has received written Notice to Proceed; (d) All deliverables shall be subject to Client's inspection and acceptance within fifteen (15) business days of delivery.

Frequently asked questions about stipulation

Violating a stipulation typically constitutes a breach of contract. The consequences depend on whether the stipulation is a material term or a minor one. Violating a material stipulation (core requirement) may give the other party the right to terminate the contract and seek damages. Violating a minor stipulation usually entitles the other party to damages but not termination. The contract may also specify remedies for specific stipulation violations.

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This 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.