Clear explanations of 500+ contract clauses, written in plain English for businesses and individuals.
This clause allocates responsibility for bank charges incurred during the transaction, including wire transfer fees, returned check fees, overdraft charges, currency conversion fees, or other banking-related costs. It specifies which party must absor
Read More →This clause determines how transaction fees—such as payment processing fees, wire transfer charges, currency conversion fees, or platform fees—are divided between the parties. It specifies whether fees are borne entirely by one party, split proportio
Read More →This clause allocates responsibility for calculating, collecting, and remitting sales tax obligations arising from the transaction. It specifies which party bears the burden of determining applicable tax rates based on jurisdiction, customer location
Read More →A VAT (Value Added Tax) treatment clause specifies how Value Added Tax—a consumption tax levied at each stage of production or distribution—will be handled in a commercial transaction. This clause typically addresses: (1) whether the stated contract
Read More →An invoice dispute procedure establishes a formal, structured process for handling disagreements about billing in SaaS (Software-as-a-Service) contracts. This clause typically specifies the timeframe within which a customer must notify the vendor of
Read More →A performance bond requirement is a financial guarantee that obligates a third party (typically a surety or bonding company) to compensate the property owner or developer if the contractor fails to complete construction work as specified in the contr
Read More →A Retention Amount Holding clause requires the paying party to withhold a percentage of each progress payment (typically 5-10%) and hold it in reserve until final project completion and acceptance. This retained amount serves as security, incentivizi
Read More →A Progress Payment Schedule is a structured payment arrangement commonly used in construction, service delivery, or project-based contracts where compensation is tied to measurable milestones or completion stages rather than a lump sum at the end. Th
Read More →Net Payment Terms establish the timeframe within which an insured party or policyholder must pay premiums to their insurance provider. This clause specifies the number of days (commonly Net 30, Net 60, or Net 90) from the invoice date by which paymen
Read More →A Payment Upon Receipt clause in a force-majeure context is unusual and potentially problematic. Typically, "payment upon receipt" means payment is due when the customer receives goods or services. However, when paired with force-majeure provisions (
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