Contractual Terms Definition
A contract is a legally binding agreement between two or more parties. The terms of a contract define the rights and obligations of the parties to the agreement. These terms are typically written in a contract document.
There are many different types of contractual terms, but some of the most common include:
– Breach of contract: A breach of contract occurs when one party fails to uphold their end of the agreement. This can lead to legal action being taken against them.
– Indemnity: An indemnity clause protects one party from liability if the other party breaches the contract.
– Warranties: Warranties are promises made by one party in a contract that are designed to protect the other party. For example, a warranty may promise that a product is free from defects.
– Liability: Liability clauses define what happens if one party breaches the contract and causes damages to the other party. These clauses can limit or exclude liability altogether.
