Clear explanations of 500+ contract clauses, written in plain English for businesses and individuals.
This clause allows one party to change the payment terms (the number of days you have to pay an invoice) during the contract, usually based on circumstances like poor payment history, financial problems, or changed business conditions. It matters bec
Read More →This clause sets out the formal steps both parties must follow if they disagree about whether money is actually owed. It typically requires one party to notify the other in writing, give a deadline to respond, and often requires attempting to resolve
Read More →A set-off clause lets the other party subtract money they claim you owe them from payments they owe you. For example, if they owe you £10,000 but claim you damaged their equipment for £2,000, they might pay you only £8,000 and call it even. This is m
Read More →This clause says the other party will deduct taxes from your payment before giving you the money—usually because you're a contractor or foreign supplier. For example, if you invoice for £10,000 and they're required to withhold 20% tax, you only recei
Read More →This clause decides who bears the risk if exchange rates move between when you agree the price and when you actually get paid. For example, if you're a UK company owed $10,000 USD and the pound strengthens, you'll receive fewer pounds than expected.
Read More →This clause sets what interest rate you'll charge if the other party pays you late. For example, if they owe you £5,000 and pay 30 days late at 8% annual interest, you'd earn about £33 extra. In the UK, the Late Payment of Commercial Debts (Interest)
Read More →A retention amount is money the other party holds back from each payment you're owed—usually 5-10%—and only pays you later (often after the project ends). This protects them if your work is defective or incomplete. For example, if you invoice for £10
Read More →This clause breaks the contract price into smaller payments, each triggered when the supplier completes a specific stage of work (for example, 25% on contract signing, 25% on design approval, 25% on production completion, 25% on delivery). This prote
Read More →This clause requires you to pay part or all of the contract price before the other party delivers goods or services. For example, you might pay 50% upfront and 50% on delivery. Advance payments create real financial risk for the paying party: if the
Read More →This clause allows either party to cancel the contract if a force majeure event prevents performance for longer than a specified period (often 30–90 days). This protects both sides from being trapped in a dead contract—if a supplier cannot deliver fo
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