Clear explanations of 500+ contract clauses, written in plain English for businesses and individuals.
This clause forces both parties to attempt mediation (a negotiation with a neutral third party) before they can go to court or arbitration. Mediation is non-binding, meaning the mediator can't force a decision on you—they just help you talk and find
Read More →This clause specifies what each party receives in exchange for their promises—the "price" of the deal. In contract law, consideration is the legal requirement that both sides must give something of value; without it, a contract isn't binding. For exa
Read More →This clause says that if the company puts you on "garden leave" (paying you to stay home and not work during your notice period), that time counts toward your restricted period. For example, if you're restricted for 12 months and put on 3 months of g
Read More →This clause creates different levels of restriction that decrease over time. For example, it might say "you can't work for direct competitors for 12 months, but you can work for indirect competitors after 6 months." This is fairer than a flat restric
Read More →This clause gives a court permission to edit or reduce an unfair restrictive covenant rather than throw it out entirely. For example, if a non-compete clause is too broad, the court can narrow it instead of canceling it completely. This is important
Read More →This is the time limit on how long you must stay away from the company's customers or competitors after you leave. For example, it might say "12 months" or "18 months." The length matters enormously because the longer the period, the more your career
Read More →This clause defines which customers you're forbidden from approaching after you leave a job. Instead of naming specific people, it describes them—for example, "any company we contacted in the last 12 months" or "anyone who bought from us in the past
Read More →This clause prevents you from doing business with the company's customers after you leave. For example, if you sold insurance to ABC Corporation, you cannot approach ABC Corporation to sell them insurance again for a competitor. This is considered a
Read More →This clause stops you from recruiting or hiring employees from your former company after you leave. For example, you cannot call up your former colleagues and ask them to join you at a new job. This is considered a relatively reasonable restriction b
Read More →This clause prevents you from doing business with the company's suppliers after you leave. For instance, if you worked at a retailer, you cannot approach their clothing manufacturers to buy directly or work with them for a competing retailer. This is
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