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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Termination

Termination for Convenience

📖 3 min read

This clause lets one or both parties end the contract whenever they want, usually with just notice (like 30 days). It matters because it gives you an escape route if circumstances change, but it also means the other party can abandon you with minimal

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Liability

Survival of Obligations

📖 3 min read

This clause says certain promises in the contract continue to apply even after the contract officially ends. For example, confidentiality obligations, indemnity promises, or warranty disclaimers might survive for 2-5 years after the contract terminat

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Liability

Exclusion of Fraud Liability

📖 3 min read

This clause attempts to say that one party cannot be sued for fraud—lying or deliberately deceiving the other party. This is almost always unenforceable and void in both UK and US courts. Courts treat fraud as so serious that they refuse to let parti

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Liability

Aggregate Liability Cap

📖 3 min read

This clause sets a maximum total amount one party must pay for all damages combined, no matter how many things go wrong. For example, a contract might say "our total liability cannot exceed £50,000" even if you suffer £200,000 in losses from multiple

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Liability

Third-Party Claim Indemnity

📖 3 min read

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

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Liability

Disclaimer of Warranties

📖 3 min read

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

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Liability

Sole Remedy Clause

📖 3 min read

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

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Liability

Time Bar on Claims

📖 3 min read

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

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Liability

Exclusion of Consequential Loss

📖 3 min read

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

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Liability

Liquidated Damages

📖 3 min read

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

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