Contract Clauses Explained in Plain English

Browse 200+ sample articles free, written in plain English for businesses and individuals. The full library is for members.

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Employment

Restrictive Covenant Validity

📖 3 min read

A restrictive covenant is a promise that after you leave, you won't work for competitors, solicit customers, or use company secrets for a set period (typically 6-24 months). These clauses are legally enforceable only if they're "reasonable"—meaning t

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Employment

Garden Leave Provisions

📖 3 min read

Garden leave means the employer pays your salary but requires you to stay away from work during your notice period (often weeks or months). You cannot work for competitors or access company information during this time. This protects the employer's s

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Employment

Probationary Period

📖 3 min read

A probationary period is a trial phase (usually 3-6 months) where either you or the employer can end the employment with less notice or fewer legal protections than normal. During this time, the employer can dismiss you more easily without proving a

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Restrictive covenants

Garden Leave Clause

📖 3 min read

This clause requires an employee to stay away from work during their notice period (usually paid), rather than working out their notice normally. The employer pays you but you can't come to the office or do the job—you're essentially on paid leave. T

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Restrictive covenants

Non-Disparagement

📖 3 min read

This clause stops you from saying negative things about the other party—usually your former employer, business partner, or the company you're selling. It applies even after the contract ends. For example, you can't tell journalists or social media th

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Restrictive covenants

Standstill Agreement

📖 3 min read

This clause stops someone from buying more shares in a company, making a takeover bid, or publicly criticizing the company's management without permission. It's often used to protect a company from hostile takeovers or aggressive investors. The claus

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Restrictive covenants

Lock-Up Period

📖 3 min read

This clause prevents someone from selling their shares or stake in a company for a set period of time, usually after a major event like an IPO (going public) or acquisition. The idea is to show confidence in the deal and prevent a flood of shares hit

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Restrictive covenants

Step-In Rights

📖 3 min read

This clause lets one party take over another party's obligations or position if something goes wrong. For example, if a contractor stops work on a building project, the property owner can "step in" and hire someone else to finish the job, then bill t

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Restrictive covenants

Radius Restriction

📖 3 min read

This clause prevents you from working or operating a business within a certain distance (for example, 5 miles or 10 kilometers) from your current employer's location for a set period after you leave. It is a geographic limit designed to protect the e

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Restrictive covenants

Exclusive Dealing

📖 3 min read

This clause requires you to buy all your supplies, services, or products from one specific supplier or seller, rather than shopping around. It removes your freedom to choose vendors based on price, quality, or convenience. In competition law (both UK

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