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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Force majeure

Labor Dispute Exclusion

📖 3 min read

This clause says that strikes, lockouts, or other labor disputes don't count as force majeure—meaning you can't use them as an excuse for not performing. This is a high-risk clause because labor disputes are common and can genuinely prevent work, yet

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Force majeure

Government Action Coverage

📖 3 min read

This clause excuses performance if a government action (like a ban, new law, or permit denial) makes the contract impossible to fulfill. For instance, if a new export regulation suddenly prohibits shipping your product to a country, this clause would

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Force majeure

Supply Chain Disruption

📖 3 min read

This clause excuses a party from delivering goods or services if their suppliers fail them due to unforeseeable events. For example, if a manufacturer can't get raw materials because a port closes unexpectedly, they might claim they're not in breach

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Force majeure

Cyber Attack Exclusion

📖 3 min read

This clause says that if a cyber attack prevents you or the other party from performing the contract, you are NOT excused from your obligations—you still have to pay damages or face breach of contract claims. Cyber attacks are increasingly common, bu

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Force majeure

Pandemic Coverage

📖 3 min read

This clause states whether pandemics (like COVID-19) count as "force majeure"—a legal excuse that lets you stop performing your contract without penalty if something beyond your control makes performance impossible. If pandemics are covered, you can

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Dispute resolution

Confidentiality of Proceedings

📖 3 min read

This clause prevents you and the other party from discussing the dispute, the evidence, or the outcome publicly or with anyone outside the legal team. It protects both parties' privacy and business secrets. However, it can work against you if the oth

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Dispute resolution

Governing Arbitration Law

📖 3 min read

This clause specifies which country's laws and arbitration rules will apply if you end up in arbitration (a private dispute process instead of court). This is critical because different countries have very different rules about what evidence is allow

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Dispute resolution

Multi-Tiered Dispute Resolution

📖 3 min read

This clause sets up a step-by-step process you must follow before going to court or arbitration. Typically, you start with negotiation between senior managers, then move to mediation (where a neutral person helps you find agreement), and only then ca

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Dispute resolution

Expert Determination

📖 3 min read

A dispute clause that forces you to travel far, use expensive arbitration, or give up your right to a jury trial. This clause is called "Expert Determination".

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Dispute resolution

Emergency Arbitrator

📖 3 min read

A standard rule about how disagreements will be handled. Usually involves talking, mediation, then court if needed. This clause is called "Emergency Arbitrator".

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