Clear explanations of 500+ contract clauses, written in plain English for businesses and individuals.
This clause makes one party promise to pay for legal costs and damages if a third person (someone outside the contract) sues the other party. For example, if you hire a contractor and they injure someone on your property, an indemnity clause might fo
Read More →This clause says the seller is NOT promising that their product or service works in any particular way—you get it "as is." For example, if you buy software with this clause, the company isn't guaranteeing it won't crash or lose your data. This matter
Read More →This clause says that one specific remedy (usually a refund or repair) is the only way to fix a breach—you cannot sue for damages, replacement, or anything else. For example: "If the software doesn't work, your only remedy is a refund of the license
Read More →This clause sets a deadline—usually 6 months or 1 year after a problem occurs—after which you cannot sue for breach of contract, even if you have a valid claim. For example: "Any claim must be made within 12 months of delivery, or you lose the right
Read More →This clause says you cannot claim money for indirect or "knock-on" damages—only direct losses. For example, if a supplier delivers faulty parts and your factory shuts down for a week, you can claim the cost of the parts, but not the lost profits from
Read More →This clause sets a fixed amount of money you must pay if you break a specific part of the contract, instead of the other party having to prove their actual loss in court. For example: "If you miss the delivery deadline, you pay £500 per day." UK and
Read More →This clause means there is no maximum limit on how much money one party can be forced to pay if they breach the contract or cause harm. Without a cap, if something goes seriously wrong, you could owe hundreds of thousands or millions of pounds/dollar
Read More →This clause says the other party will buy all their needs for a product from you, usually at a set price. It matters because you're betting your revenue on one customer's demand, which could drop unexpectedly, leaving you with unused capacity. For ex
Read More →This clause says you must sell all (or most) of what you produce to the other party, usually at a set price. It matters because it removes your freedom to sell elsewhere and ties your income to one buyer's demand. For example, a farmer might sign an
Read More →This clause gives one party the first chance to buy or match an offer before you can sell to someone else. It matters because it delays your ability to close deals and gives the other party a veto over your choices. For example, if you own a building
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