Clear explanations of 500+ contract clauses, written in plain English for businesses and individuals.
This clause tries to limit how much money someone must pay if they cause serious harm through gross negligence—which is much worse than ordinary carelessness. For example, a warehouse operator who fails to maintain fire safety systems might be guilty
Read More →This clause says one party cannot limit their liability if they act with "reckless misconduct"—meaning they knew their actions were dangerous but did them anyway. For example, if a builder deliberately ignores safety rules and someone gets hurt, they
Read More →This clause says the other party cannot be held liable for damages if they deliberately break the contract—they can only be sued for "wilful default" (intentional breach) in very limited circumstances, if at all. This is extremely one-sided because i
Read More →This clause caps what you can recover in damages to match the other party's degree of fault. For example, if a breach is 60% the other party's fault and 40% your own, you can only recover 60% of your losses. This is based on the legal principle of "c
Read More →This clause means each party is only responsible for their own share of the damage or breach—not for anyone else's share. For example, if three contractors work on a project and one causes £100,000 in damage, that contractor pays £100,000, not all th
Read More →This clause says you only pay damages if the other party's breach actually caused you a net loss after subtracting any money you saved or benefits you gained. For example, if a supplier fails to deliver goods but you buy cheaper replacements and save
Read More →This clause lets one party decide whether to end the contract based on whether the other party "fits" their company culture—a vague, subjective standard with no clear definition. The problem is that "cultural fit" is legally dangerous because it's im
Read More →This clause requires one party (usually the service provider) to share skills, information, and expertise with the other party so you're not dependent on them forever. It's crucial because if a vendor is the only person who understands how your syste
Read More →This clause covers what happens if key people leave, the company is sold, or ownership changes during the contract. It matters because contracts often depend on specific individuals' skills or relationships, and losing them can derail the deal. For e
Read More →An obsolescence management clause addresses what happens to products, services, or technology when they become outdated, superseded, or no longer commercially viable. This clause typically specifies obligations such as: providing advance notice befor
Read More →Get instant AI-powered risk analysis. No legal degree required.
Get Started Free