Clause In A Contract Definition
A contract clause is a specific provision or condition in a contract.Clauses are used to modify, limit, or define the obligations and rights of the parties to the agreement. The use of clauses allows the contracting parties to tailor the agreement to their specific needs and requirements.
There are many different types of clauses that can be included in a contract, and the choice of which clauses to use will depend on the nature of the agreement and the objectives of the parties. Some common contract clauses include:
– Breach of contract: This clause outlines what will happen if one party fails to meet its obligations under the contract.
– Indemnification: This clause protects one party from being held liable for damages or losses incurred by the other party as a result of their actions.
– Disclaimer of warranties: This clause disclaims any warranties made by one party about the goods or services being provided under the contract.
– Limitation of liability: This clause limits the amount of damages that can be recovered by either party in the event that they breach the contract.
– Arbitration: This clause requires that any disputes between the parties be resolved through arbitration instead of going to court.
