Clear explanations of 500+ contract clauses, written in plain English for businesses and individuals.
This clause specifies that an employee or contractor must provide payment or a deposit to the employer before commencing work or receiving compensation for services. This is highly unusual and generally problematic in employment relationships, as it
Read More →This clause establishes the specific method and timing for converting payments between different currencies when a contract involves international transactions or multi-currency obligations. It typically specifies which exchange rate will be used (su
Read More →This clause specifies the currency in which all payments under the contract must be made. It designates whether payments are due in U.S. dollars, euros, British pounds, or another currency, and addresses how currency fluctuations will be handled if p
Read More →This clause specifies the interest rate that accrues on payments that are not made by their contractual due date. It establishes the financial penalty for late payment and typically includes the calculation method (simple vs. compound interest), the
Read More →This clause establishes the schedule and frequency at which payments will be made under the contract. It specifies whether payments occur monthly, quarterly, annually, or on some other recurring basis, and typically includes the due dates, payment mi
Read More →This clause allocates responsibility between you and a vendor when a third party (someone outside your direct relationship) sues one or both of you. For example, if a vendor's software infringes a patent held by another company, or if the vendor's se
Read More →This clause sets a ceiling on how much a vendor must pay in damages related to professional liability claims if the contract is terminated. Professional liability refers to the vendor's failure to perform services with the standard of care expected i
Read More →An Errors and Omissions Liability clause in a SaaS contract defines the vendor's responsibility when the software fails to perform as promised or contains bugs, defects, or inaccuracies that cause harm to the customer. This clause typically specifies
Read More →This clause restricts what a professional service provider (or sometimes a client) can do after the engagement ends, typically including non-compete, non-solicitation, and confidentiality obligations. A non-compete provision prevents the service prov
Read More →This clause governs liability and risk allocation in software licensing agreements. It typically addresses what happens when software malfunctions, fails to perform as described, or causes damage to the licensee's systems or data. Software liability
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